Barratt to cut around 1,000 jobs

LONDON (Reuters) - House builder Barratt Developments plans to cut around 1,000 jobs as it pushes for cost cuts to endure a rapidly worsening housing market, it said on Friday.

The company is joining a growing list of housebuilders cutting staff as they struggle to cope with the effects of the credit crisis and rapidly falling home sales.

Taylor Wimpey said on Wednesday it would cut 900 jobs after failing to secure additional financing from investors, while Persimmon last month pointed to imminent redundancies.

Trade association Home Builders' Federation recently warned that job losses would likely reach into the tens of thousands as the downturn worsened at unprecedented speed.

A spokesman for Barratt confirmed the Newcastle-Upon-Tyne-based firm is in consultations with around 1,000 workers, or 15 percent of its 6,700-strong workforce, a move that has been "slightly" accelerated to adapt to the current market.

Barratt, which is weighed down by over 1.7 billion pounds of debt, is expected to provide more details in a full-year trading update on July 10.

The market is also hoping to learn whether the group has reached agreement with banks to refinance part of its debt in order to avoid potential breaches of its loan covenants or if it needs to raise funds like its similarly debt-laden peer, Taylor Wimpey.

Redrow and Persimmon are due to update the market on July 8 and July 9, respectively.

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