Government Announces 377 Job Losses in Connection with the Fallout of Carillion

    Photo by Terry Robinson via Wikimedia Commons

    The government has revealed that 377 staff have already been made redundant as a result of the collapse of Carillion.

    However, this morning, the official who is tasked with liquidating Carillion, the Official Receiver, said that it could safeguard the positions of 919 employees, who will be reassigned to new contractors. Majority of the employees whose positions were saved are those who are working on government, infrastructure, and construction projects.

    An Official Receiver spokesperson stated: “I recognise this will be a worrying time for all those affected, their families and local communities. I would like to thank all staff for their professionalism throughout the liquidation.”

    Carillion’s liquidator said that it hopes to continue reassigning workers to new employment. However, the employees who are already redundant will be able to receive advice and information from the rapid response centre of the Jobcentre.

    This week, MPs have turned the heat on the big four accountants of the City this week. They highlighted the lack of competition in the sector – and suggested that it had a role in the demise of Carillion.

    The Financial Reporting Council is investigating the audit of KPMG on Carillion; the firm was the auditor of Carillion for 19 years. During a select committee evidence session that happened this week, Frank Field, the Labour MP who is also the chair of the Work and Pensions select committee, said that the big four had formed an “oligarchy.”

    Talking to Stephen Hadrill, the FRC’s chief executive, Field stated: “Two of the last three finance directors at Carillion came from KPMG. KPMG for the last 19 years has conducted the audit [of Carillion]. Did that not sound a warning to you?”

    “Given the oligarchy that now exists among the accountancy firms, shouldn’t we be considering a recommendation to the government to break them up?”