Olympic Security Snafu Could Cost Jobs [VIDEO]
The chairman of G4S has indicated that senior managers may be in danger of losing their jobs following the security company’s failure to recruit sufficient staff for the Olympic Games.
The Financial Times on Monday quoted company chairman John Connolly as saying “it would be right to consider whether any members of the senior team are best placed to take the company forward.”
Chief executive Nick Buckles has already waived his bonus for this year, and has said he considered — but ruled out — resigning.
Britain is calling in 3,500 troops to cover the positions G4S could not fill.
The company said Monday its loss on the contract would range between 35 million pounds and 50 million pounds ($54 million-$78 million) in this financial year.
A loss of 50 million pounds works out to about 12-13 percent of the company’s annual profit, analysts calculated.
“G4S has evidently over-stretched itself with a high profile contract, which could have wider implications for the group’s ability to win work,” analysts at Espirito Santo Investment Bank said. “Given the high-profile nature of this contract there is now a high level of reputational damage.”
G4S shares were down 7.4 percent at 258.1 pence in early trading in London. The shares have dropped more than 30 pence since the Olympic shortfall was disclosed.
(Copyright 2012 by The Associated Press. All Rights Reserved)