Wolseley Plc is the leading distributor of building as well as plumbing supplies in the United Kingdom. It is supplying to reputable plumbing companies in the country such as Plum b4 You Welling. The supplier recently announced that they are going to let go about 800 personnel out of their 6,000 workers. They have also decided to close over one-tenth of their branches located all over the UK. This strategy was decided in order to shore up profits because of the rising competition in the market.
According to a statement released by Plumb Center chain’s owner, this move will save the company between £25 million and £30 million or $32 million annually. Eighty per cent of the companies earning is currently from transactions in the US but they are currently thinking about ways to alter their strategy in the Nordic market.
The company announced the decision to cut after it released a statistics showing that their trading profit went up to £917 millionwithin a year which commenced last July 31. The increase in the revenueis about 8.5 per cent equivalent to £14.4 billion. This number is slightly higher than the estimate provided by analysts.
John Martin, the chief executive, said that they are vigilant when it comes to cost control in order to protect their profits but they are also investing in various opportunities that could promote growth in profit for the company. They are confident that the company will continue to grow in the coming years.
In an attempt to simplify the network of the company and to provide better service, they are planning to cut about 800 workers from the 750 current branches they have in the United Kingdom. They are hoping that the decision will drive availability and provide better choice for customers and will turn out positive for shareholders as well.
In the United States, Wolseley is the owner of Ferguson which is a plumbing supplier in the country. They said that the cut will not affect the current supplies and operation of the company with regards to plumbing businesses in the UK such as Plumb4You Welling.