Agility and Cost-Saving Measures: Nexity’s Response to the Housing Crisis

The French real estate developer Nexity is facing rising construction costs, declining demand, and regulatory challenges. In response to these challenges, the company has announced plans to cut 502 positions, which will primarily affect the Promotion-construction division. This is part of a restructuring plan that includes decentralization, cost-cutting, and diversification into new areas like solar energy and savings products.

The CEO of Nexity, Véronique Bédague, emphasized the importance of agility and cost-saving measures in order to navigate the crisis. While the group is seeing some positive indicators for the future, Bédague cautioned that the housing crisis is likely to persist for some time. To adapt and innovate in this challenging environment, Nexity is focusing on sustainability, cost-efficiency, and proactive planning.

In a bid to address its operating costs and navigate the current economic situation, Nexity has initiated an information-consultation process for a job protection plan leading to elimination of 502 positions. The workforce reduction will primarily affect the Promotion-construction division with an estimated cost of around 50 million euros with anticipated savings of 36 million euros in 2025 and 45 million euros per year thereafter.

Nexity’s deputy general director Jean-Claude Bassien confirmed that the job protection plan would be implemented as part of their restructuring plan which includes decentralization and diversification into new areas like solar energy and savings products. The company’s focus on sustainability, cost efficiency and proactive planning will ensure their continued success in a challenging economic environment.