Construction group BAM will probably cut hundreds of jobs due to the corona crisis. The company has announced a major reorganization, but is still discussing the exact number of jobs in consultation with works councils and unions.
In total, BAM has approximately 18,000 employees. The Dutch company is active in several countries. BAM expects this program to generate cost savings of 100 million euros per year, which should structurally improve profitability. The company hopes to implement the interventions in the next six months, which will reduce costs next year.
CEO Ruud Joosten, who joined the company at the beginning of September, refers in an explanation to the disappointing results for the first half year. BAM was affected by, among other things, the corona crisis, which is detrimental to effectiveness on the construction site and to confidence. Due to the corona measures, construction work also came to a temporary halt. In addition, the company is facing losses at BAM International and other problems.
“Although this is a painful decision for the employees concerned, it is a necessary step to improve BAM’s financial performance,” said Joosten. His predecessor Rob van Wingerden unexpectedly left the largest construction company in the Netherlands earlier this year. Under his rule, BAM went wrong with various jobs. For example, the costs for the OpenIJ lock project near IJmuiden were many times higher than budgeted. In addition to those problem projects, BAM, like its peers, was faced with the PFAS and nitrogen issue after the Council of State declared the Dutch nitrogen policy invalid last year.
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