Delta job cuts rise as market shrinks

Delta’s embattled workforce faces more pain with news that the company is to shed a total of 600 jobs throughout Europe, rather than the 350 redundancies announced earlier this year. The group last week blamed the extra losses on the shrinking UK market for electrical and plumbing products. So far it has made 200 redundancies. […]

Delta’s embattled workforce faces more pain with news that the company is to shed a total of 600 jobs throughout Europe, rather than the 350 redundancies announced earlier this year.

The group last week blamed the extra losses on the shrinking UK market for electrical and plumbing products. So far it has made 200 redundancies.

The latest round of cuts will see jobs go at all of the group’s five electrical products sites, but the precise details are subject to negotiations with unions.

Although Delta insisted that the measures being taken across the group would benefit its second-half performance, it warned that earnings per share would be adversely affected by the increasingly difficult conditions in the wholesale segment of its UK electrical and German plumbing businesses.

It has already set aside £3.5m to pay for the job cuts it announced back in March.

The company added that a reduction in demand for electrical switchgear and circuit breakers is likely to slice another £1m off its profits in the first half.

Delta’s full-year profits, reported in March, came in at £41.7m before exceptional items, on a turnover of £663m.

The company’s shares reacted badly to the latest developments, falling 9p to 138.5p.