HomeServe puts jobs in jeopardy
About 200 jobs are at risk at Walsall-based HomeServe as it plans to reduce operating costs as a result of having fewer UK customers.
The home repairs business has now started a consultation period with the 200 staff.
It expects one-off costs in the UK, including reorganisation and redundancy costs and additional third party support, to be about £20m this year, compared with the previous £10m estimate.
The reduced headcount is expected to reduce operating costs by up to £5m in the 2013 financial year, HomeServe told the Stock Exchange today (8 February).
"As a result of having fewer customers in the UK and the continued refinement of our marketing and customer contact strategies we have commenced a consultation period with employees regarding a reduction in the UK headcount of around 200 reflecting a smaller outbound telephony operation and a more focused marketing function," the company said.
HomeServe restarted "limited" telesales activity in November after an inquiry into the misselling of its products.
On 31 October, the company announced it would suspended its sales operations following a review by accountant Deloitte.
The review found cases where the sales processes did not meet required standards and HomeServe said it planned to retrain nearly 500 call centre staff.
Progress was being made in "reinvigorating" customer focus and restarting marketing activity, although it is taking longer than the business expected, it added in today's interim management statement.
In the UK, 14 of its 15 water utility partners have recommenced inbound sales calls, with final approval yet to come from the 15th.
HomeServe expects its adjusted profit before tax for the year ending 31 March 2012 to be in line with market expectations.
The range of analyst forecasts for the adjusted figures for the year ending 31March 2012 is £122m to £132m, based on predictions as at 7 February 2012.
