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Ray O'Rourke's email to staff sent out today

Dear Colleague,

Over the next few weeks, we will be consulting with employees across Laing O鈥橰ourke鈥檚 European Hub on a proposal to re-organise specific areas of our business in line with our 鈥楩ind, Win, Deliver鈥� business priorities. It is likely that this proposed reorganisation will result in a significant reduction in the number of roles required across the business.

Through a combination of re-deployment, the removal of vacant positions and the use of fewer temporary and agency staff we will, to the greatest extent possible, minimise the number of people who will leave the Group as a consequence.

Today鈥檚 announcement has been prompted by the fact that the construction sector lags the global economic cycle in coming out of recession 鈥� the industry鈥檚 most challenging period is still ahead and all companies will have to respond accordingly. Therefore, it is now more pressing than ever that we bring forward the proposed transformation of the European Hub, to establish a more sustainable cost base while fully realising the benefits of our vertically-integrated delivery model, as we broaden our client offering across the value chain.

These proposals are a critical step in future-proofing our business, as contract pricing has become the most influential factor in many clients鈥� decision-making process - we need to ensure we have a tight rein on controllable costs to compete effectively in winning work.

We will review and consolidate activities within our European functional and technical support activities. As a consequence, we propose that a large proportion of the roles falling away will be within the support functions and management layers across our business units, the corporate centre and as a result of projects coming to a natural end.

With your help, the suggested changes will create a more efficient and effective organisational structure with the appropriate levels of professional resource necessary to achieve our current and medium-term business priorities. This will also deliver a substantial reduction in our annual operating costs, improving our competitiveness and business performance.

The other two hubs that comprise the Laing O鈥橰ourke Group- Middle East and South Asia (MESA) and Australasia 鈥� are unaffected by today鈥檚 announcement. MESA has already re-organised its operations to safeguard the business from the impacts of the downturn in the region.

I know that this announcement will raise many questions and create uncertainty. You have my assurance that we will be fair, consistent and transparent throughout this period, communicating the suggested changes in an open and timely manner. You will hear further details on how the proposals affect your business in the coming days.

If you have any immediate concerns you should talk to your team leader or HR partner in the first instance. Useful information, including frequently-asked questions and answers plus HR policies relating to the re-organisation and the consultation process, is also available on iGATE.

We must constantly challenge ourselves to be more efficient in everything we do to improve service delivery while reducing our cost to serve. By anticipating the tougher trading conditions over the next 12 months and taking decisive action now, I believe we will create a resilient set of businesses better equipped to ride out the current storm and emerge in a stronger position.

Ray O鈥橰ourke

Chairman and Chief Executive