French Real Estate Developer Nexity To Cut 502 Jobs Amidst Construction Crisis

Nexity, a leading French real estate developer, is cutting 502 positions in response to the deep construction crisis. The group’s deputy general director, Jean-Claude Bassien, announced this decision on Thursday, stating that a job protection plan will be implemented after the information-consultation process with social partners.

The cost of this plan for the group 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 the most affected, with a 27% 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. The restructuring plan also involves increased decentralization and efforts to reduce general and real estate costs.

As the construction sector grapples with rising costs and reduced demand, Nexity, along with other developers, faces challenges in the market. The restructuring plan includes diversification into solar energy and savings products, as well as a focus on transforming existing spaces to adapt to changing market conditions.

Despite the difficulties, Nexity remains hopeful for the future, citing positive indicators such as a slight decline in credit rates and an uptick in sales reservations. However, CEO Véronique Bédague warns that the structural housing crisis is far from over and will require time and effort to address effectively.