Merger of Deeside based Redrow and Barrett could see 800 jobs lost

In a landmark deal, housebuilder Barratt Developments has agreed to purchase its industry rival, Deeside-based Redrow, in a transaction valued at £2.52 billion.

The merger marks a significant step towards consolidation in the housebuilding market, with both firms aiming to ‘leverage synergies’ to boost efficiency and increase home production across the country.

However, the merger comes with a significant human cost, with a combined workforce of around 8,300, preliminary estimates suggest that more than 800 employees could face redundancy.

The job losses are expected to result from a strategic review aimed at eliminating duplicate roles and consolidating office spaces to cut costs, according to regulatory documents published on Wednesday.

With Barratt operating 29 offices and Redrow 12 across the UK, including its head office in Ewloe, the combined entity is considering the closure of approximately nine offices as part of its rationalisation efforts.

The companies have expressed a commitment to retaining the best talent from both Barratt and Redrow, emphasising the importance of their workforce in achieving the merged entity’s objectives.

According to the bid document published on Wednesday, “Barratt has great respect for Redrow’s management and employees.”

Despite the focus on preserving jobs where possible, the reality of the merger means a 10% reduction in the workforce across the combined business.

The reduction will predominantly affect overlapping central and support functions, as well as divisions hit by the rationalisation program.

The companies are exploring options to reallocate affected employees to new roles or growth-related opportunities, prioritising the retention of permanent positions.

Operational restructuring following the merger’s completion is anticipated to be phased over 12 months, with detailed planning and engagement with employee representatives to ensure compliance with legal obligations.

Barratt has also pledged to safeguard the existing employment rights of both Barratt and Redrow employees, with no major changes to employment conditions unless mutually agreed upon.

Commenting on the merger, Steve Morgan, Redrow’s founder, said:

“During the 50 years since I founded Redrow, I could not be more proud of the unique reputation it has earned for building premium homes and thriving communities.”

“Barratt is a homebuilder I have long admired due to their likeminded attention to quality. I am confident that the Barratt / Redrow combination, with their three high-quality complementary brands, will create a standout homebuilder for the future and accelerate the delivery of much-needed homes across the UK.”