Tuesday, July 8, 2008

Oh… My… God

Persimmon lays off 40% of its workforce

Housebuilder Persimmon is laying off 2,000 staff - 40% of its workforce - after a slump in sales, and warned that conditions in the housing market remain tough. The job cuts bring the combined job losses in the housebuilding sector to more than 4,000. Last week Barratt laid off 1,000 staff from its 6,500-strong workforce and closed six offices, while Taylor Wimpey, the biggest housebuilder by volume, axed 900. The expected job losses from Persimmon had been 1000.

Posted by little professor @ 04:13 PM (1480 views)
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18 thoughts on “Oh… My… God

  • little professor says:

    The 2,000 figure isn’t being reported elsewhere – everyone else says 1,100. Wonder if the Guardian have gotten confused. Wouldn’t be the first time.

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  • cornishman says:

    “But Mr Brown said the economy was still growing, with “very high” employment and comparatively low interest rates.” see here

    “I’m the right leader,” says Brown

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  • cornishman says:

    sorry – just discovered hpwatcher has an earlier thread on the link I posted above…

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  • And if the housebuilders are laying off staff, surely the Polish and other foreign construction workers will (continue to) leave the UK in even greater numbers. I wonder how Stuart Lawz will turn this into “Great newZ for landlordZ”

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  • From Forbes.com

    “LONDON – House prices are sliding, consumer confidence is in the doldrums and recession is knocking at Britain’s door–a perfect time to buy shares in Brit homebuilder Persimmon.
    —positioned to resist and recover from the popping of the real estate bubble. The company’s land portfolio, financial position and aggressive restructuring plans all got the thumbs up from analysts on Tuesday, following a half-year trading update.
    But in terms of write-downs on its land portfolio, Persimmon expects a figure in the “tens of millions” as opposed to the hundreds of millions of pounds its rivals are reportedly facing. Around 80.0% of Persimmon’s portfolio of 76,000 plots was acquired before 2007, when prices had not yet reached their frothiest.”

    So probably the safest bet out of the big three but the shares are still likely tumble.

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  • beartil2010 says:

    It’s 2,000 – read the article – 1,100 salaried staff get redundancies, 900 weekly staff just get told not to turn up again next week

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  • planning4acrash says:

    Compare pre July 6th, there HAS been a sudden change in Consciousness. People are now suddeny being made aware that our economy is a pack of cards. More of the same till november, when all will be aware of what we have been discussing for years. There will then be a year of finding solutions, whilst the elite react violently, possibly via Iranian war and 2,3, £6/litre petrol. and $2000-5000/ounce gold. Have fun!

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  • Yeah….that’s not what you said would happen though is it mate?

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  • p4ac – you and your ilk were given every opportunity to say what might / might not happen. All we’re seeing now is a continuation of a trend that’s been patently obvious for weeks if not months. You wouldn’t even say that you predicted this continuation before the event. You, s2r1, malct and all your little friends were wrong, face it. Just like you were about May 16th, about gold being $1,500/oz at the end of June.

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  • 9. planning4acrash said…”£6/litre petrol”

    That can’t be right. S2r1 says that the Japanese have invented a car that runs on water and the price of oil will crash – starting 6th July.

    I wish you two would be consistent with your drivel.

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  • @planning4acrash…

    So in 2 days you can tell there has been a change of consciousness. “People are now suddeny being made aware that our economy is a pack of cards.” – What evidence have you got – you just stick your head up, make a comment and sit back and ride the waves, admit it.

    If you look elsewhere in this blog you’ll find an article that states “homeowners believe that, despite current movements in house prices, we are unlikely to experience a really prolonged period of house price falls” – That sure sounds like a change to me. Guess I better get down to tesco, don’t wanna be late when the looting starts.

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  • little professor says:

    Flashback to February of this year:

    Persimmon CEO sees ‘stable’ home prices for 2008

    Persimmon PLC chief executive Mike Farley expects home prices to remain ‘stable’ in 2008.

    ‘New house-selling prices across the UK are holding firm,’ Farley said in an interview this morning. ‘And although we expect incentives to continue to be offered and marketing costs to increase, we see them remaining stable for the rest of the year.’

    Farley said the housing market made a cautious start to the year, but was gradually improving.

    ‘We are slowly going back to more normal trading conditions,’ he said.

    At 9.59 am, shares were up 11 pence at 774 pence

    Persimmon share price today: 235 pence

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  • Well spotted LP. Takes the meaning of the term ‘vested interest’ to new heights.

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  • Thank you LP
    How come he’s in a multi million pound job and didn’t know it was going to fall apart – most of us could have done his job better.

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  • i-cld-murder-a-blt says:

    I estimate that Lloyds have lost around £125 million on this company in the last 3 months alone.

    Ie total shares 27 million at say cost of £7.00 = £189 million * 66% which is the rduction of share price in the last 3 months alone = £125 million.

    They are a 9.11% shareholder, along with barclays at 3.97% as at 31 December 2007.

    These share have lost 87% of their value in the last 18 months, this is some state of affair dont you agree?

    If I extrapolate the figures factoring in purchase of shares at say £15 each, the losses are gigantic.

    I cannot wait to get the accounts for Bradford & B & Barratt.

    If you want free accounts please go to The Annual Reports Service and get them for free.

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  • it_is_going_with_a_bang says:

    Hilarious stuff – you keep telling yourself that P4C….

    Back to topic …
    Mike Farley and others like him have no choice but to stand up and lie to everyone. Of course he knew he was talking utter tripe, but he gets paid to lie and push up the share price.
    As much as we all want CEO’s to do a Ratner’s and come out with the truth – it’s clear to see what happens when you do that!

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