The cost savings are to largely come from ‘reductions in employee-related costs’, indicating that more workers will be affected by the shake-up.
More jobs are at risk at property developer Harworth after it disclosed plans to slash costs amid efforts to save about £7.4 million a year.
The Rotherham-based company is also continuing to reject a £583 million takeover offer from infrastructure firm Peel Group.
Harworth told investors that it planned to cut costs sharply over the next three years in order to become a “simpler, lower cost” operation.
It expects to secure annual savings of at least £7.4 million a year by the end of 2028.
The group said about £1.3 million of these savings had already been secured through job cuts earlier this year. Harworth did not disclose how many roles were affected.
The cost savings are to largely come from “reductions in employee-related costs”, indicating that more jobs will be affected.
It said the company would also seek broader “overhead efficiencies” and simplify its operating platform and delivery model to secure more savings.
The programme is expected secure annual savings of £3.2 million for 2026, £6.9 million in 2027 and £7.4 million in 2028, the company said.
It expects to reduce its administrative expenses by more than a fifth as a result.
On Tuesday, Harworth also reaffirmed its “unanimous and unequivocal” rejection of the takeover offer from Doncaster Sheffield Airport owner Peel.
Peel, which owns almost 30% of Harworth, made the £583 million bid to take the business private in August, offering shareholders 172.5 pence per share.
However, the group said the offer “fundamentally undervalues Harworth and its near and longer-term prospects”.
