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Major practices announce job cuts
Make Architects, Feilden Clegg Bradley Studios (FCBS) and Fletcher Priest Architects have all confirmed they made staff cuts in recent weeks It is the second time this year that Ken Shuttleworths practice Make has been through a round of redundancies, having laid off around 15 per cent of its staff in March.The practice said it had now made 20 employees redundant and shut down its Sydney office which it set up in 2016.The news comes in the wake of poor financial figures published last month. The company's accounts for the year ending 31 December 2023 revealed a loss of 1.46 million and a drop in turnover from to 19.2 million in 2022 to 18.3 million. The practice, whose key workload is in the office sector, said the downturn had been caused by the economy taking longer to recover than expected and planning decisions [on key projects being] held up.AdvertisementSpeaking about the latest cuts, Shuttleworth, said: Its been a tough time for everyone in the industry.[We] have had to say goodbye to 20 friends and close the Sydney studio, which has been very painful.Looking ahead, the practice founder said: The budget impact on the National Insurance (NI) has been a cruel blow to everyone in a people-based business. It means that costs have increased, which will have an impact on the ability to pay more or employ future staff, when the market changes.However, we believe that we are now very well placed to respond to the challenges and opportunities ahead.The practice will be hoping that one of the schemes to soon move forward is its redevelopment of the former ITV Studios on Londons South Bank.AdvertisementNext week a ruling is expected on a High Court action brought by Save Our South Bank Action Group (SOS), a coalition of local opponents of the 25-storey project who successfully applied for a judicial review.Meanwhile, AJ100 practice Fletcher Priest has confirmed it recently made 10 voluntary redundancies. The company was ranked 28th in this years league table of the UKs largest architectural firms and had a 130-strong workforce at the end of last year.The practices most recent accounts show a 10.5 million turnover. Earlier this year Fletcher Priest unveiled concept plans for a 40-storey tower at 63 St Mary Axe, in the City of London, next door to Foggo Associates Can of Ham, which completed in 2019.Bath-based practice FCBS said it too was reducing the number of employees on its books. The company, which recorded a 19.6 million turnover in its most recent accounts, had 164 staff at the end of last year.FCBS said: Like many practices, we have recently made some redundancies, including voluntary redundancies, across our four offices. This decision was driven by a reduced workload, including a few major projects put on hold or cancelled due to funding.Earlier this month, it emerged the government was looking to scrap funding for FCBSs Liverpool museums plans, along with cash pots promised to other major Northern projects.In its October Budget, it said it was minded to cancel the as-yet unfunded Levelling Up Culture and Capital Projects which were announced in the previous governments final Budget earlier this year.The move throws into question a number of major projects planned in the North, including FCBSs proposed 58 million transformation of Liverpool Slavery and Maritime Museums, a new northern branch of the British Library in Leeds and schemes for the National Railway Museum in York.The AJ understands Hopkins Architects has also carried out a round of redundancy consultations, though the outcome of that process could not be confirmed.In April, Hopkins reported a 30 per cent hike in turnover on the back of increasing international workloads but revealed that income from UK jobs had dropped.According to Hopkins Architects group accounts for the year ended 31 March 2023, the practices fee income rose from 23.4 million to 30.6 million while its headcount remained steady at 180. This increase was down to a significant hike in work outside the UK and Europe, where its turnover more than doubled from 7.9 million to 16.9 million.However, fees from projects in this country fell from 15.3 million to 13.7 million during the reporting period.Last months RIBAs Future Trends survey the institutes monthly bellwether of the professions workload confidence shows that optimism has dropped among the practices regularly surveyed.RIBA's head of economic research and analysis Adrian Malleson said: On balance, practices remain positive about Future Workload, but only just.The recent gains in overall outlook and sectoral confidence have fallen back somewhat this month. Practices are increasingly cautious about recruitment. While the north of England remains positive, the south of England (excluding the capital) has seen marked falls in confidence and recruiting intention.After increasing confidence across the monitored sectors, this month sees all four soften, with a negative outlook.Practices described projects being put on hold ahead of the new governments first budgetHe added: Commentary received from practices described projects being put on hold as practices, clients and contractors awaited the new governments first budget. Practices also reported higher-risk building (HRB) projects being put on hold or progressing slowly, with clients being reluctant to commission HRB projects, and contractors being reluctant to tender for them.While awaiting the budget, practices described ongoing planning delays, a still weak economy, and elevated (though slowly falling) interest rates holding back the sector.2024-11-20Richard Waitecomment and share
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