Troubled facilities management contractor Mitie is to shed 480 jobs and has put its property management business up for sale as it continues its cost-cutting restructure.
In a pre-close statement for the half year ended 30 September 2017 today, the firm said it has instructed Evercore Partners International to explore a potential sale of its property management business, having already received expressions of interest from third parties.
The new management’s ‘Project Helix’ transformation programme, which is expected to cut group operating costs by £40 million a year by 2020, also includes outsourcing certain accounting and finance functions, automating many administration activities, rationalising the corporate structure by cutting tiers of management and consolidating three London offices into a single new office in the Shard.
The company said the upgrades involved in Project Helix will cost more than previously expected and is now estimating implementation costs incurred in the current year at £24m, as opposed to previous forecasts of £15m.
“These initiatives and other aspects of the transformation programme are expected to result in headcount reduction of approximately 480 by the end of the current financial year,” it added.