HS2 plans sweeping job cuts and major restructuring as it battles soaring costs
HS2 Ltd, the company overseeing the delivery of the high-speed railway line, is planning a sweeping round of job cuts and a major restructuring as the embattled project’s scope narrows following the cancellation of the northern leg.
An internal presentation shared with CityAM shows that over 100 jobs are at risk in HS2 Ltd’s finance department, which includes the Land and Property unit, the segment responsible for compensating landowners impacted by the construction of HS2.
But CityAM understands the total number of jobs at risk could be much higher as the restructuring programme concerns the entire business.
“Conversations with potentially impacted colleagues will have taken place before this briefing, recognising how unsettling the news will be,” the presentation reads.
HS2 Ltd is an arms-length body of the Department for Transport (DfT) and is responsible for developing and promoting the scheme. Employing around 2,000 people, it operates as a private company but is funded by public money.
It is understood that the restructure will be completed by the start of October.
It comes after former Prime Minister Rishi Sunak made the controversial decision last October to axe HS2’s northern leg, which runs from Birmingham to Manchester, as costs ballooned well above initial estimates.
It prompted fury from all sides of the political spectrum, ranging from Northern leaders to former Prime Minister’s Boris Johnson and Theresa May. To appease the backlash, the Conservatives set aside £36bn for other transport projects as part of a scheme dubbed ‘Network North,’ but the new plans became a focus of criticism for being rushed together in Number 10 without expert consultation.
The new Labour government confirmed in Wednesday’s King’s Speech it had no intention of reversing Sunak’s decision. It means there is still a prospect the route could run only between Birmingham and Outer London’s suburbs, given separate delays to the construction of HS2’s Central London terminus in Euston.
Executives from HS2 Ltd are currently holding talks with the Transport Salaried Staffs’ Association (TSSA) union over the restructuring. In the financial department, a total of 102 roles could be “discontinued,” according to the presentation, with 44 new roles created alongside.
The briefing notes state that the ongoing cost challenges of the project would “mean a shift in current ways of working and culture,” and flagged the impact of the government’s Network North announcement on its “size and scope.”
A spokesperson for HS2 Ltd said: “HS2 Ltd needs to change to reflect the significantly reduced programme scope resulting from the former government’s Network North announcement. This means reducing in size while ensuring we have the right people in the right posts to safely and effectively deliver the railway in the most cost-effective way possible.
“Nothing has yet been finalised regarding our business proposals and we won’t be in a position to confirm further details until we have concluded meaningful consultation with our staff and their workplace representatives”.
The TSSA have been approached for comment.