Housebuilder Persimmon cutting 1,100 jobs after housing sales slump

It seems that the housing sales slump has taken its toll on Housebuilder Persimmon, they now have to cut 1,100 jobs, they have even warned that the housing market is set to get a lot worse.

The company had reported a drop in housing sales when they meet on April 24, since then Persimmon have said that the deterioration in market conditions is now even worse.

This news comes shortly after upmarket estate agent, Savills, warned that business was down significantly for them compared to last year. Savills had said that this slowdown in the housing market has now spread too many parts of Europe.

Persimmon shares have dropped 11p which now stands at 217p that is a fall of 4.8%. The housebuilder have also noticed that weekly visitors to sites have fallen by 20% compared to this time last year.

Persimmon has also said that cancellation rates are now at 26%, compared to 17% on the same time last year. The number of houses completed has now fallen 39% on last year’s figures.

The 1,100 job cuts will save Persimmon £45m per year, and now with lower overheads that are appropriate for the lower levels of business, they believe that they have taken a positive step.

Source