Caught in the real estate crisis, Nexity launched a social plan

Hard blow for Nexit employees. The financial crisis that has affected the housing sector for several months, the management will launch a social plan. The real estate developer took this decision to start the information-consultation process in the coming weeks Staff representative bodies (IRP) prior to implementation of Employment Protection Plan (PSE), It presented its 2023 financial results in a press release on Wednesday, showing a 33% drop in operating profit to 246 million euros. All for a turnover of 4.3 billion euros, down 9%.

Unions “fear” hundreds of job cuts

The situation is worse in the “Residential Development” division, which saw its operating profit fall by 50% to 140 million. The biggest concern is that 3,400 employees (out of 8,500) are concentrated in this unit itself. Both in the Paris head office and in the regional agencies. Unions fear ” Hundreds »» Job cuts have occurred, while the number of employees has already decreased, according to him, by 300 people since January 2023. Terms of the plan could be detailed by mid-April, according to a union source.

As a reminder, this announcement is not surprising. It was regularly mentioned in management speeches. Notable by Véronique Badeg in the column of La Tribune Sunday.

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Véronique Bedag goes further

Like the rest of the sector affected by the unprecedented housing crisis, and by halving transactions in “new construction”, Nexity will reorganize the governance of the “Residential Real Estate Development Division” branch. Véronique Bédague will be in direct charge of the branch and will replace Stéphane Deliet, director general of the branch.

was asked by GalleryNexity Group, did not want to comment.

“We are going to adapt our business and our costs,” Véronique Bedegue told the press, “If we want to produce affordable housing, we have to reduce costs.”

No dividend

To compensate for this year it is described as “ low point », and to control its debts, the group has sold its Portuguese and Polish subsidiaries, and above all it wants to eliminate its services arm. As such, it announced at the end of 2023 that it has entered into exclusive talks with investment company Bridgepoint to sell its property administration arm (trustee and rental management), which is valued at 440 million euros and which employs around 3,100 or more people. than a third of its employees.

And it is still looking for buyers for its corporate real estate management and distribution activities. Nexity has reduced its net debt from 820 to 776 million euros and has set a target of bringing it below 500 million by the end of 2025. The group is also giving up paying dividends to its shareholders, although it previously wanted to offer them a payment of at least 2.50 euros per share. The group is not setting other quantitative targets for 2024, waiting and hoping to see the evolution of interest rates and public policies. “Rebound in 2025”.