(Sharecast News) - G4S is planning to cut 1,150 jobs at its cash business in a move that takes Britain closer to a cashless society, according to one of the UK's biggest unions.
The GMB union said it was in talks with the security company to try to save as many jobs as possible from the restructuring, announced on Monday.
News of the job cuts emerged after G4S posted an upbeat trading statement that said first-half profit would beat City expectations. The GMB revealed the cuts as the Governor of the Bank of England said he was very worried about unemployment. G4S's job cuts add to many thousands announced in the past week.
The FTSE 250 company did not break down how its business was performing but in an update in June it said revenue at the cash business fell 35% in April and May during the Covid-19 lockdown. It did not disclose the job cuts in the trading statement.
Roger Jenkins, the GMB's national officer, said: "These cuts are devastating for our members and their families. GMB will fight to the end for every single job."
Jenkins warned that the cuts were a sign that cash could soon disappear from UK society, leaving old and vulnerable people in difficulty and damaging small businesses that rely on cash payments. The Covid-19 crisis has speeded up the shift to shopping online and contactless transcactions.
G4S has sold most of its cash-handling business to its US rival Brinks but has retained the UK part of the division. which manages and transports cash for banks and other businesses. The cash business was once the company's core operation but it now makes 90% of its revenue from other security services.
The UK cash operation was the subject of a derogatory song by the anarcho-punk group Crass called Securicor, named after the company that merged with Group 4 to form G4S in 2004.
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