Interserve is to make five workers in Gibraltar redundant as part of a group-wide programme to streamline its operations.
The redundancies were revealed by Unite the Union, which has called a meeting of its members at the company, which provides services to the Ministry of Defence in Gibraltar.
Unite, which said it had previously enjoyed a positive relationship with Interserve, expressed disappointment at the manner in which the company communicated the redundancies.
Unite said it had no advance notice of the job cuts and found out at the same time as the affected workers.
“Unite intends to fully support its membership in its endeavour to stop any job losses,” the union said yesterday.
The development comes at a difficult time for Interserve, which holds several UK government contracts and employs 80,000 people across its operations, including around 200 in Gibraltar.
The company is responsible for British military bases in Gibraltar and the Falklands and holds several contracts with local authorities, London Underground and for Whitehall offices.
It recently began implementing a transformation plan called ‘Fit for Growth’ in a bid to streamline the group and improve its efficiency and financial stability.
Interserve fell deeper into the red last month, with chairman Glyn Baker bemoaning “self-inflicted mistakes of the past”.
The group saw losses more than double to £244.4 million in 2017, which compares with a £94.1 million loss in 2016.
Interserve has endured a tumultuous period that has seen the company warn over profits and seek emergency financing.
The firm was hit by disappointing trading in July and August, and in October warned over profits and a potential breach of its banking covenants as it grappled with escalating staff costs, squeezed margins and a flagging performance from its justice business.