Wolseley makes some management changes to shave costs
Wolseley parent of U.S.-based pro dealers Stock Building Supply and Ferguson, has shaken up its European management structure in a bid to save costs, according to a report in the Financial Times.
Nigel Sibley, who served as managing director of the company’s U.K. and Irish business, will leave the company in a move meant "to reduce management duplication," according to the report. Sibley will be replaced by Rob Marchbank, who serves as a member of the board of directors and head of Wolseley’s European operations -- he will take on both roles after the transition.
Additionally, the company opted to put European human resources head Bob Morrison in charge of U.K. human resources, adding to his current role and thus eliminating a separate U.K. HR head position.
“We took action in light of deterioration of market conditions in the U.K. It's a move to reduce management duplication and cut costs as opposed to a performance issue or a change in strategy,” the company said in a statement.
Wolseley has seen weakness in the U.K. market as well as in its operations in the United States. Earlier this month, Wolseley posted an 8 percent drop in revenues for its North American division during the 11-month period ended June 30. Earnings for the division, which also includes Wolseley’s Canadian operations, fell 46 percent.