Persimmon sheds 1,100 jobs

One of the UK's biggest housebuilders has cut 1,100 jobs amid plunging house sales and prices.

Persimmon's job losses follow nearly 2,000 job cuts announced last week by rival firms Taylor Wimpey and Barratt Developments.

The poor housing market conditions may also prompt Persimmon to announce a write-down in the value of its land holdings and a cut to its dividend in an effort to conserve cash.

In the group's last update in April, Persimmon said it had seen a 24 per cent drop in revenues so far in the year, adding that it was putting new projects on hold.

Housebuilders have been hit hard by the credit crunch as the mortgage drought has meant homebuyers have been unable to secure the finance they need, while property price falls have put people off buying a home.

The pessimism surrounding the industry has seen housebuilders' share prices tumble to fractions of their worth a year ago. Persimmon lost its place in the FTSE 100 Index last month after its share price plummeted. The firm's stock is worth around a fifth of its value a year ago.

Persimmon employs around 5,000 people and operates from 34 offices across the UK. It sold a total of 15,905 properties during 2007.

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