Construction and civil engineering firm Esh Group is to cut more than 60 jobs as a result of the coronavirus pandemic.
The County Durham firm said the 67 redundancies were necessary to protect the firm’s long-term future, following both the coronavirus lockdown and increasing uncertainty in the 海角视频 economy over Brexit.
The jobs will mostly go in administrative and support staff, as well as some jobs that have been directly affected by the Covid-19 restrictions.
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The company, which has around 840 employees, said it would start consultation with staff and their representatives next week.
Esh chief executive Andy Radcliffe said: “Following a comprehensive consultation, we have concluded that up to 67 jobs could potentially be made redundant.
“This is not a decision we have taken lightly but is a necessary one that ensures our long-term stability as we navigate an uncertain economic future. We will of course aim to keep the number of compulsory redundancies to a minimum.
“It is very difficult to predict the long-term impact of this pandemic, with no historical precedent to work from, ambiguity surrounding Brexit, and the risk of further spikes in infections becoming a real prospect, impacting upon our ability to understand how our longer-term trade will perform.”
Esh furloughed more than 500 staff when the coronavirus crisis hit in March, with remaining employees taking temporary pay cuts. Many of those furloughed have since returned to work as construction sites have gradually reopened.
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The company had started 2020 with a forward order book of more than £250m and said measures had been put in place to ensure it was able to deliver contracts in the civil engineering, construction and affordable housing sectors.
But Mr Radclife said there was a “a high degree of risk of some opportunities not coming to fruition”, plus a very competitive landscape that could drive down prices.
He added: “The adjustments being made will ensure the long-term future of the business is protected. We will keep our offices in Durham, Sunderland, and Leeds open and remain committed to supporting our local supply and labour chains, evidenced by our prompt payments throughout this crisis.
“We are excited by Prime Minister Boris Johnson’s plans for our sector and hope that this will aid a quick recovery, enabling us to consider recruitment of colleagues, and importantly, apprentices in the future.”