Smiths Group to cut jobs in major restructuring
Engineering giant Smiths Group said it will cut jobs as part of a major restructuring aimed at slashing costs across the business.
The FTSE 100 firm said it hopes the restructuring will improve margins and deliver £70 million in benefits each year from 2022.
Andy Reynolds Smith, group chief executive, said he regrets that the move will “result in some job losses”, although the scale of the cuts remains unknown.
Smiths said that the restructuring will cost around £65 million, which will be spread across the current financial year and 2021.
It came as the group announced a 1% rise in underlying revenue for the four months to May 31, on the back of good momentum from the first half and “strong order books” at the start of the pandemic.
However, it has reported “some slowing” in trading due to the impact of the outbreak on its operations and customers.
It said its John Crane engineering product business has seen revenue continue to grow in the year-to-date, despite a recent slowdown driven by disruption to customer service.
The group’s medical arm has reported a 1% increase in underlying revenues for the year-to-date, after reporting increased critical care demand and restocking immediately after the virus struck.
Mr Reynolds Smith said: “Market-leading positions and a flexible business model have enabled the group to continue to perform through crisis disruption.
“Our immediate focus is the safety of our people and business continuity for our customers.
“We will continue to take the actions necessary to safeguard our long-term competitiveness.”