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Carillion latest: Job losses hit 930 as official receiver announces further redundancies | Carillion latest: Job losses hit 930 as official receiver announces further redundancies |
(about 1 hour later) | |
A further 101 Carillion workers have been made redundant, taking total job losses at the collapsed construction firm to 930, the official receiver said on Thursday. | A further 101 Carillion workers have been made redundant, taking total job losses at the collapsed construction firm to 930, the official receiver said on Thursday. |
A further 1,221 jobs would be safeguarded, said a spokesperson for the official receiver, which is handling Carillion's liquidation. | |
The 101 jobs that have been cut are a mix of back-office and engineering support roles that aren't needed by new suppliers. | |
The spokesperson said: "Those who have lost their jobs will be able to find support through Jobcentre Plus’ Rapid Response Service and are also entitled to make a claim for statutory redundancy payments. | |
"The liquidation process continues and we remain focused on engaging with staff and new suppliers about any changes to jobs and contracts." | |
Carillion collapsed last month under a mountain of debt and a huge pension deficit. | |
The official receiver announced 450 Carillion staff had been made redundant on Monday, adding to the 377 let go last week. | |
The latest round of job losses comes just two days after Carillion’s former chief executive this week said he wished he had acted sooner the run-up to the construction firm’s collapse. | |
Keith Cochrane and other top bosses faced a volley of questions from MPs on Tuesday. | |
“Clearly the business did have issues – undoubtedly,” Keith Cochrane told a joint business and pensions select committee. “And clearly, do I wish we had done something about it sooner? Absolutely. I recognise that.” | |
Carillion’s former chief financial officer, Zafar Khan, who also appeared before the committee, denied that he had been “asleep at the wheel” in the run-up to the firm's demise. | |
The company's former boss, Richard Howson, and other departed executives have faced fierce criticism over large bonus payments they received when the company appeared to be experiencing financial difficulty. | |
Mr Howson was paid £1.5m in salary, bonuses and pension payments when he left Carillion in 2016, and will continue to be paid a £600,000 salary and £28,000 benefits until October 2018. | |
He was also paid a bonus of £293,000 in 2015. Mr Khan's predecessor as finance chief, Richard Adam, received a £215,000 bonus in 2015 and £140,000 in 2016. | |
Mr Khan, who told MPs this week that he was surprised by the company's collapse, will continue to receive his £425,000 salary until September this year, twelve months after he was sacked. | |
He was in charge of the company's accounts for just nine months, during which the company issued an £845m writedown. | |
Jeremy Corbyn has called on the directors to give back their bonuses. | |
As the firm collapsed, it emerged that, in 2016, the directors had made it harder for investors to claw back executives’ bonuses if the business encountered difficulties. |
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