Engineering support services group Redhall is to downsize its workforce as it refocuses the group on higher margin manufacturing particularly in the nuclear and oil and gas markets.
The Wakefield-based firm said that chairman David Jackson is to step down with immediate effect and take retirement as the group announced an underlying annual loss of £1.6m. Mr Jackson will remain a major shareholder with a 2.5 per cent stake.
Following the completion of a review by Redhall’s chief executive Phil Brierley, the group said it has considerable expertise in the design, manufacture, installation and commissioning of fire and blast resistant doors, window and wall systems.
Mr Brierley said it was too early to say how many jobs will be cut, but the removal of a divisional management layer and centralised support functions will save £1.2m a year.
The overall restructuring cost is expected to be £1.5m. The group hopes the new strategy will be completed by next September.
“We are removing this layer partly to improve communication so we have a more direct involvement with the businesses,” said Mr Brierley. “It will be a leaner structure and communication with the businesses will be simplified.”
He said that the group’s long term opportunities will be in nuclear.