With falling commodity, oil and energy prices creating negative market conditions, UK waste and recycling firm, Viridor, has launched a new operating model and has proposed to close a small number of sites, merge the company’s South West and South East operating regions.
The company – a part of the Pennon Group (LSE: PNN) - said that its plans are subject to consultation with affected employees, but are aimed at an overall headcount reduction of around 5%. This is expected to include a reduction of around 90 roles in Viridor’s central support functions, and approximately 40 in its recycling and resources operations.
“In 2014 we launched our strategy and purpose, a key aim of which is to deliver sustainable growth for Viridor, and we’ve made good progress in delivering this,” commented Ian McAulay, chief executive of Viridor.
“However we continue to encounter sustained negative market conditions, with unprecedented large drops in the cost of crude oil, commodity and energy prices. We have therefore accelerated strategic plans to reduce our costs and increase efficiencies,” he added.
According to Viridor the new operational model, combined with the planned cost reduction programme, are needed to meet the needs of current and future market conditions, and to provide a platform for growth in line with its business strategy. The e to deliver a more efficient operating base.
“I recognise that the news of job losses will be unsettling for affected employees, and we’ll work closely over the coming weeks to offer support and, where appropriate, outplacement assistance,” McAulay said.
“These changes provide further confidence that we’re able to continue to deliver our strategy and business transformation, and drive towards greater functionality across our asset base. Our proposed new operating model will enable a continued focus on delivering best value and quality services for our customers, as well as the development of a regional circular economy-based service model,” the chief executive concluded.
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