British building and roofing products supplier Marshalls plans to cut 250 jobs and has lowered its annual forecast, citing persistent weakness in the UK housing market.
The announcement sent Marshalls' shares down 11% to hit a near three-week low.
The update comes as the UK housing market slows due to high mortgage rates and economic pressures that are deterring homebuyers.
The Elland, UK-based Marshalls said it would cut production volumes to manage working capital and forecast earnings below previous expectations after reporting a 13% decline in like-for-like group revenue for the first six months of 2022.
The cost cuts could generate around 9 million pounds ($11.6 million) in annual savings, the company said.
"The actions will conserve cash but also limit the level of sales margins that can be achieved for the rest of the year," said Steve Clayton of Hargreaves Lansdown.
