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Some staff have been deployed to other parts of the business where workload is holding up, such as water. But total group headcount is being reduced to around 17,700 by the end of next month, a net reduction in the region of 1,000 people over the course of the past year.
“We continue to adjust our resources to reflect anticipated market demand,” the company says.
In fiscal 2009/10 headcount was reduced from more than 18,000 to 15,600, but the acquisition of US company PBSJ in October 2010 brought a further 3,100 employees with it. About 300 employees in North America have since been let go.
In a trading update for the period since 1 October 2010, the company says that, globally, it is “performing well and trading remains in line with our expectations, despite challenging market conditions”.
In the UK the broad spread of markets in which Atkins operates has helped cushion the blow of the market downturn. “Reductions in government spending have had the greatest effect in our highways business, where we continue to decrease staff numbers despite a strong forward workload of long term contracts in highway services. Our water business, which has undergone significant restructuring over the last year, is seeing improving workload from the water companies as their AMP5 investment programmes begin, and our aerospace business is performing well and continues to grow. Our rail business is operating in a well-funded market and while there are high barriers to entry in signalling operations, elsewhere the market is becoming increasingly competitive.”
Internationally, Asia Pacific is ahead of expectations, with good results from transportation infrastructure work in Hong Kong for the MTRC and an improving mainland China business.
Confidence is returning in the Middle East, where recent successes include Atkins’ appointment as lead designer for the expansion of King Abdulaziz International Airport in Saudi Arabia and for the 1,200km Union Rail project in the UAE.
In the USA, the acquisition of Florida-based PBSJ completed on 1 October and the integration is progressing well, Atkins said. Prior to acquisition Atkins had 595 employees in North America and PBSJ had 3100. The group now has 3,500 employees in North America.
Atkins said that its financial position remains strong, with net funds of around £90m at the end of December 2010.
“We remain confident for the full year despite challenging trading conditions in a number of our markets where we have taken timely action to adjust resource levels in line with prospective demand. We are investing in growth markets and continue to benefit from our geographic and sector diversification,” the company said.
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