Nexity, a prominent French real estate developer, has announced plans to cut 502 positions in response to the ongoing construction crisis. Jean-Claude Bassien, the deputy general director of the group, made this announcement on Thursday during an information-consultation process with social partners. The cost of this plan is estimated at around 50 million euros, with expected savings of 36 million euros in 2025 and 45 million per year thereafter.
The Promotion-construction division will be most affected by this restructuring plan, with a decrease in workforce compared to 2022. Nexity’s CEO, Véronique Bédague, emphasized the need for agility and cost reduction to navigate through the crisis. The company aims to achieve savings of 95 million euros by 2026.
In addition to cost reduction efforts, Nexity’s restructuring plan also involves increased decentralization and efforts to reduce general and real estate costs. As part of this plan, the company will diversify into solar energy and savings products and focus on transforming existing spaces to adapt to changing market conditions.
Despite these challenges, Nexity remains optimistic about the future. Positive indicators such as a slight decline in credit rates and an uptick in sales reservations suggest that the market may be recovering. However, CEO Véronique Bédague warns that the structural housing crisis is far from over and will require time and effort to address effectively.
Overall, Nexity’s restructuring plan reflects the industry’s growing awareness of the need for cost reduction and adaptability in order to survive in today’s challenging market conditions.