SIG to cut jobs as sales fall

13th May 2009 12:20

Shares in SIG fell back after the building products group said it would cut jobs and take other cost-cutting measures to cope with falling sales.The firm said sales so far this year are down by 7.2% compared with the same period last year.In the UK and Ireland, which accounts for half of sales, SIG said it will close branches and lay off staff in the distribution business. In mainland Europe, also accounting for half of sales, there will be 100 job losses in Germany and 30 in France. "Macroeconomic forces continue to impact negatively on construction markets in SIG's countries of operation and are expected to do so throughout the remainder of 2009 and into 2010," the firm said. "The severity and duration of the downturn in the different sectors and geographies in which SIG operates is an unfolding picture, but it is clear that the first half will be exceptionally difficult."