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G4S takes $80 million hit from Olympics

Tuesday, August 28, 2012 - 01:19

Aug.28 - G4S, the company at the heart of the London Olympics security debacle, is cutting 1,100 jobs as it looks to recover 50 million pounds ($79 million) lost on the Games contract. Sonia Legg reports.

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Security was one of the few black spots in a largely unblemished Olympics - troops had to be brought in as emergency back up. G4S's failure to provide the required 10,400 security guards clearly damaged the company too. It's cutting 1,100 jobs as it looks to recover the 50 million pounds it lost as a result. "We are deeply disappointed that we had significant issues with the 2012 contract," said Chief Executive Nick Buckles, "clearly it is a big setback and we need to rebuild the brand." G4S employs more than 650,000 people in 125 countries. Its half year results - for the six months to June - were flat on last year with revenue up 5.8 percent. They don't cover the critical Games period. But the firm is still confident about its outlook with 3.8 billion pounds of work per year in the pipeline. The contract failure is being reviewed - the inquiry's findings will be released in late September. G4S shares fell 2.5 percent after the results were announced. Sonia Legg, Reuters.

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G4S takes $80 million hit from Olympics

Tuesday, August 28, 2012 - 01:19