Royal Bam is to make 650 workers redundant and carry out a major restructuring.
However, its UK businesses will survive largely unscathed for the moment, despite reporting a loss of £3M in August due to problems with two civil engineering jobs.
The group’s operating companies in the Netherlands and Belgium will be reorganised into two businesses: construction and property; and civil engineering plus Bam PPP.
The workforce will be reduced by approximately 650 over the course of 2015. The job losses will be mainly in the Netherlands in back office positions. Bam employs 9,700 people in the Netherlands.
The Dutch-owned firm said its Back in Shape programme had improved Bam’s tendering and delivery processes across the group, following losses of £60M on “a mid-sized UK civil engineering project which was bid for in 2012.”
The firm added: “This improvement will centre on better insights into project risks and opportunities, financial as well as operational.
“As a result, the quality of new order intake will continue to improve, while at the same time Bam works through its backlog of older projects. Bam aims to get its results on projects into a 2% to 4%range in the longer term.”
CEO Rob van Wingerden said: “Our recent performance shows that we need to change in order to deliver on our Group strategy and capitalise on our potential.
“So we are reshaping our operational model by strengthening our culture, simplifying our structure and sharpening our processes.
“That will translate into better project control, a lower cost base and stronger balance sheet. And that in turn will improve our competitive position and create more value for our shareholders.”