Nexity Announces Job Cuts Amid Construction Crisis: Real Estate Developer To Eliminate 502 Positions

French real estate developer Nexity has announced plans to cut 502 positions in response to the ongoing construction crisis. The company’s deputy general director, Jean-Claude Bassien, confirmed that the information-consultation process for a job protection plan will be initiated, leading to the elimination of these positions.

Nexity has been focused on reducing its operating costs to address the challenges posed by the current economic situation. The workforce reduction will primarily affect the Promotion-construction division, which is expected to decrease by 27% compared to 2022. The cost of the plan is estimated at around 50 million euros, with anticipated savings of 36 million euros in 2025 and 45 million euros per year thereafter.

The CEO of Nexity, Véronique Bédague, emphasized the importance of agility and cost-saving measures in order to navigate the crisis. The real estate sector in France is facing rising construction costs, declining demand, and regulatory challenges, leading to job losses across the industry. Nexity’s restructuring plan includes decentralization, cost-cutting, and diversification into new areas like solar energy and savings products. While the group is seeing some positive indicators for the future, CEO Véronique Bédague cautions that the housing crisis is likely to persist for some time.

In response to the changing market conditions, Nexity is aiming to adapt and innovate in order to weather the current challenges. The group is focused on sustainability, cost-efficiency, and proactive planning to ensure its continued success in a challenging economic environment.