Skanska has revealed plans to lay-off thousands of employees as part of its comprehensive restructuring programme to improve profitability.

In its preliminary year-end results, the company said about 3,000 staff will be cut to "reduce the size of unprofitable business units and increase focus on cost control and risk management".

"Skanska will also make a number of organizational and leadership changes," the Group said.

"Due to the unsatisfactory performance of several construction units Skanska will take the following actions: restructure the construction operations in Poland, leave the power sector in the USA, focus on the core business in the UK and continue to adapt to tougher market conditions in the Czech Republic."

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Despite the company's Nordic construction units continuing to deliver strong results, there has been a "unsatisfactory performance" in units outside the Nordics during the last quarter of 2017, include write-downs amounting to a total of SEK 400 M (£36m) relating to operations in Skanska Poland.

"After the impairment charge, restructuring cost and project write-downs, the operating income for the full year 2017 is expected to be about about SEK 5.3 billion and the earnings per share SEK 12," the company said.

"The restructuring process will continue this year and also encompass a review of Group Governance in order to reduce costs and increase organizational effectiveness.

"The charges related to these activities are estimated to be about SEK 600 M in 2018, and connected to lay-offs of about 3,000 employees. Cost savings from these lay-offs are expected to amount to about SEK 1 billion annually."

(LM/MH)