* G4S to restructure UK cash-handling business
* Cash industry on a knife edge -GMB union
* Union in talks with G4S over planned cuts
(Writes through, adds quotes, shares and context)
By Yadarisa Shabong and Pushkala Aripaka
July 13 (Reuters) - Private security company G4S
could axe 1,150 jobs at its UK cash business as it grapples with
an increased shift to digital payments triggered by Britain's
coronavirus lockdown.
The British company sold most of its cash-handling
operations to U.S. peer Brinks in February but retained
its UK business..
"Following a review of our Cash Solutions operational
footprint in the UK, we are proposing to reshape the business,"
Paul van der Knaap, the G4S managing director for cash solutions
in the UK, said on Monday.
The GMB trade union GMB said the restructuring places 1,150
jobs at risk and that it is in talks with the company about the
planned restructuring. G4S employs about 25,000 people across
its security and cash divisions in the UK. (https://bit.ly/2ZoVkK8)
"The cash industry really is on a knife edge," GMB National
Officer Roger Jenkins said in response to the G4S announcement.
The news of the layoffs was first reported https://www.standard.co.uk/business/g4s-slash-jobs-a4496611.html
by Evening Standard and follows similar moves by other British
companies looking to cut costs in an effort to ride out the
coronavirus crisis.
G4S took a 291 million pound ($367 million) charge in 2019
mainly related to its UK cash business, pushing it to an annual
loss.
Shares in the FTSE 250 company rose 9% to 130.20 pence by
1314 GMT, boosted by an earlier announcement that first-half
profit would surpass expectations.
The upbeat profit outlook offered investors some welcome
respite after a series of setbacks in recent years, including
the loss of its contract to run a Birmingham prison and a
decision by Norway's wealth fund to shun investment in G4S.
The company on Friday agreed to pay 44.4 million pounds to
Britain's fraud office to avert criminal charges after a
long-running inquiry into electronic tagging.
G4S agreed on Friday to pay 44.4 million pounds to the Uk's
Serious Fraud Office to settle a long-running inquiry over
improper billing for electronic tagging services.
($1 = 0.7925 pounds)
(Reporting by Samantha Machado
Additional reporting by Tanishaa Nadkar and Shanima A in
Bengaluru
Editing by Shinjini Ganguli and David Goodman)
