Shares in housebuilder Taylor Wimpey more than halved in value today after the firm announced it had failed to secure a planned capital injection and would shed 900 jobs.
The firm, which also announced its group finance director Peter Johnson would stand down from the board at the end of the year, was due to announce a capital injection of £500m in a trading statement.
The housebuilder has also decided to shut 13 of its 39 regional offices as part of a review of its UK business structure.
It says it expects this to result in a reduction in overhead costs of approximately £45m a year from the fourth quarter of 2008.
Taylor Wimpey says it expects the UK housing market to remain weak for at least the rest of the year and is pessimistic on any short-term recovery.
“Our major markets are experiencing a significant downturn, characterised by significantly lower weekly sales rates and lower average selling prices than in recent years,” the company said.
Taylor Wimpey's share price has dropped significantly in response to the update, falling 31 pence to 29p.
Shares in other housebuilders also suffered, with Barratt Developments down 28%, Persimmon 18% lower and Bellway dropping 12%.
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