G4S axes 1,100 jobs following Olympics fiasco

Security firm G4S has unveiled plans to axe 1,100 jobs as the company restructures following the failure of its Olympics contract.

The company said that cutting the posts – mostly in continental Europe – would save £30 million a year.

Chief executive Nick Buckles said: “We were deeply disappointed that we had significant issues with the London 2012 Olympics contract and are very grateful to the military and the police for their support in helping us to deliver a safe and secure games.

“The overall business has performed well in achieving a similar underlying profit as the first half of last year despite economic challenges, particularly in Europe, and weakness in the US government market.”

News of the job losses came as G4S posted a significant drop in pre-tax profits to £61m from £151m a year earlier, although profits were flat on an underlying basis after sales increased 5.8 per cent to £3.9 billion.

G4S said its loss on the bungled Olympics contract will be in the region of £50m.