Carillion, one of the UK’s largest companies –employing around 43,000 staff globally including 20,000 in Britain – has faced extreme half-year losses of £1.15 billion while buried under £900m of debt. After asking the government for £20 million to secure funds to avoid going into liquidation, they have been met with refusal from the ministers, resulting in compulsory liquidation.
In case you’ve never heard of them before, Carillion are a construction company and public services provider, having worked on the Tate Modern and the Royal Opera House in the past as well as outsourcing services for the public sector such as cleaning and catering at NHS hospitals and providing school dinners. You can therefore imagine the detrimental effects that their downfall will have on public services, current contracts and their 20,000 international employees. British banks are already putting emergency measures into place to save small firms suffering as a result of the Carillion crisis and thousands of companies are facing financial losses because of funds owed to them by Carillion - funds which they are unlikely to get back.
According to Construction News Carillion has issued this statement: “Carillion continued to engage with its key financial and other stakeholders, including the government, over the course of the weekend regarding options to reduce debt and strengthen the group’s balance sheet.
“As part of this engagement, Carillion also asked those stakeholders for limited short term financial support, to enable it to continue to trade whilst longer-term engagement continued.
“Despite considerable efforts, those discussions have not been successful, and the board of Carillion has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.”
Since job losses are at the centre of this crisis, as recruiters, we’re interested in the future of those unemployed and what their next career steps may be. There has been discussion, particularly on LinkedIn, that suggests that recruiters are taking advantage of a dire situation for their own profit – gaining from the loss of others. We believe that in this time of crisis and uncertainty, it’s our responsibility to reach out to those affected and help in any way we can. We have a myriad of vacancies available in construction and engineering, so if you know anyone who has lost their job due to the Carillion crisis, please get it touch. We’d love to help to secure hard working people new roles within thriving and ambitious UK businesses.
What do you think of Carillion’s downfall and the role of recruiters? Do you have a story you’d like to share? Let us know on Facebook, Twitter and LinkedIn. And don’t forget to check out our current vacancies.