Housing crisis: following Nexity and Vinci, Bouygues Immobilier announces job cuts

Another real estate giant in trouble. Bouygues Immobilier, a subsidiary of the Bouygues group, wants to cut 225 positions as part of a social plan, the company said on Monday, facing financial difficulties due to the crisis affecting its sector.

“The company must therefore continue the necessary adaptation to the potential of its market, as well as its order book and portfolio of operations, with the priority goal of preparing for the future in a world undergoing profound changes,” explains Bouygues Immobilier in its report. Press release.

“A tighter organization should allow it to respond flexibly to the changes needed to meet the needs of tomorrow’s property market,” the company adds to justify its decision. Bouygues Immobilier is the third major property developer to announce a social plan, following Nexity and Vinci Immobilier earlier this year.

Loss of seven million euros

Developers and builders are caught between rising construction costs, driven by material tariffs and stricter environmental regulations, and falling demand, driven by difficulties accessing credit and the phasing out of tax relief schemes.

In 2023, Bouygues Immobilier suffered a net loss of 7 million euros (compared to a profit of 18 million in 2022) on revenue of 1.7 billion euros, a decrease of 14.5% compared to the previous financial year.

This job protection plan “will be the subject of negotiations in the coming weeks with social partners,” the company emphasizes, ensuring that “volunteering and internal reclassification” will be given priority.