Staff at LSL have criticised the way that news of branch closures and job losses was broken to them yesterday, by conference call.
They thought they were being asked to dial in to a conference call which involved staff training – possibly on Anti Money Laundering.
Some staff also found they could not access the conference call, and found out secondhand. LSL has agreed that this was an issue, although it says only a small number of staff were affected.
EYE has seen emails sent out early yesterday morning to staff headed: “Reminder: Mandatory Training Invitation – 5 February – 9am.”
This gave staff dial-in details to the call.
A follow-up email sent minutes later was again headed “Mandatory Training invitation”.
It said: “Just to confirm, this is for all staff in both sales and lettings. Please ensure all staff are aware and refer to the invite for further information.”
A third email, two minutes later, provided one last chase-up.
Staff were told in the “invite” that the call would be “extra training” that would “remind you of some key legislative points and update you on changes. The training is mandatory for all staff, regardless of role and responsibilities, this includes accompanied viewers”.
Staff were also told that “to ensure you complete the training”, branches would be closed between 9am and 10am yesterday.
However, not all staff managed to access the conference call. One person who could not, found out through a negotiator at another office that their own branch was being closed with their own job and those of their immediate colleagues at stake.
The employee, who was still at work in their office yesterday, told us: “We are still in the dark, although we are told there is a consultation.
“We think it is disgusting the way this has been handled.
“We thought it was about AML training but that was just a guise.
“All the branch managers should have been summoned separately and then given the task of cascading the news to their teams.
“Instead, the way the news was broken to us was a shambles. It was shocking.”
A spokesperson for LSL said yesterday evening: “It was important that everyone heard the news at the same time and every effort was made to ensure that staff – across all Reeds Rains and Your Move branches and offices – could attend co-ordinated calls and meetings as soon as possible after the regulatory news announcement was made.
“We were unable to disclose the detail of these calls in advance due to restrictions placed on us as a plc.
“It is disappointing that there have been a small number of instances where staff were unable to access the calls due to technical issues outside our control.
“As soon as we became aware of these instances, a written communication was sent to the branches concerned and pre-arranged contact was made by area management.”
The business yesterday announced that the current 404 Your Move and Reeds Rains branches will reduce to 280.
The 308 owned branches will be cut to 144, but the number of franchised branches are set to grow from 96 to 136.
Altogether some 124 branches will close with likely job losses estimated to be about 500.
Yesterday, the City showed that it did not seem to mind decisive action: shares in LSL ticked up 1p, to end at about 242p.
Comments (32)
Shame on the LSL management for such a message delivery.
I hope the people who are made redundant find a new role.
if I worked in LSL then this alone would be enough to make me dust down my CV ??
Helen Buck – LSLPS plc
Executive Director – Estate Agency
Helen was appointed as Executive Director – Estate Agency on 2nd February 2017 and has overall responsibility for the performance, strategy and development of LSL’s Estate Agency Division. Helen was previously Chief Operating Officer at Palmer & Harvey. Prior to this she was part of the Sainsbury’s management team from 2005 to 2015, including five years as a member of the Operating Board
Extract from Guardian Newspaper 23rd Jan 18:-
Palmer & Harvey collapsed with debts of more than £700m
The latest revelation comes after the Guardian revealed that P&H directors, former directors and other shareholders had received more than £70m in cash from the grocery wholesaler over the past nine years despite ongoing losses.
Is that the Helen Buck who is the identical twin of Alison Platt. Oooer!
Do not worry – she was part of the Woolworths Senior Management team prior to this…
You mean just a number cruncher, who can’t add up?
The trouble with big companies is how do you tell everyone at once or be accused of those first to know, letting it seep out causing even more distress for those yet to know. You could have sent a letter but even that is treated with disgust if the postman delivers at differing times. You certainly couldn’t get around each branch in a day. Were LSL trying to make it a personal approach to the bad news? Mistake to hide the reason for the conference call under “training”, far better to have said it was an important announcement for all staff to attend. I wish the staff every success in finding new employment.
totally agree here woodentop – I was at the forefront of this when Barclays dd the same, unfortunately a conference call is a stable way to share bad news with all – simultaneously – while in the safe space of a senior leader… no other way this coud have been done without others risking finding ut and releasing info in a different way. HOWEVER – WE WERE JUST TOLD OF A MANDATORY CONFRENCE – IT WASNT DISGUISED AS TRAINING!!!!!
Spot on !
I would go further that a full corporate environment essentially run by those outside property is not a healthy place to thrive for an entrepreunerial agent .It’s full of glass ceilings . Just look at CWD and the absence of talent at BODS level which exists amongst the ranks
They never seem to recognise thier best talent who can conjure a deal from nowhere until they upped sticks and have gone clients following
I wonder if their £20m investment in YOPA has contributed to this situation. That’s a big chunk of change, and if it did have an impact, it would be yet another painful, destructive blow inflicted by the failure of the online/hybrid brigade.
Of all the investors in online agent ventures, it’s the Corporate agent investors such as Countrywide, Savills, LSL, and Connells that baffle me the most. How can you claim to understand the essence of what agency is, and then invest in your nemesis? To me it goes to show how many individuals at high levels of corporate agency have been away from the coal face for too long, and have lost sight of the fact that it is a one-to-one relationship business. It’s as personal as having a massage – can you imagine any technology ever replacing that? I can’t.
I don’t usually agree with you Charlie but this is spot on
Investing in a significant sum in a service to put your current service out of business.
Would make sense if the ‘new’ service was more profitable but by all accounts it’s spend 3k to bring in 1k leaving a 2k loss!
Spot on !
Charlie the reason that the agents like Savills LSL and Connells invested was as a result of ‘what if this takes off’ management decision. If the concept was proven, they had a foothold and could build on it quickly or cash in, having been seduced by valuations being put out on the property dark web that call centers was THE way forward. They all invested millions at a time that the world was changing and stock markets boomed and VC and hedgefunds started throwing their weight and ‘Big Short’ pitches around. (if you’ve never watched the film, do) Countrywide tried and ended up in the same mess.
Throw in expressions like ‘proptech’ and egos accelerated decisions as well as hype over exit strategies. The truth is that biz like Purplepeople have disrupted things by getting paid for everything they do at a lower level than a large fee at the end of the transaction…more a mind set rather than disrupting a whole system.
The directors are exposed to the hype of the stock market and big business narrative and how you must evolve or die. I hope that helps explain. Hybrid needs millions of investment at a time that their traditional models are being squeezed too… a perfect storm. It will not be the first or last time that debt has killed a perfectly good idea. Cash flow and debt management is now king.
How do we know which branches are closing?
I have positions available in Bolton.
Contact me clint@harrisonsnet.co.uk
There are people on LinkedIn looking around
Presumably part of the video conference news of closure of branches included an explanation of why LSL was looking at acquisitions only last month: https://www.propertyindustryeye.com/lsl-on-the-look-out-for-more-acquisitions-of-agents/
“We’re expanding. NOT YOU!”
Terrible way to find out, but then again, I found out about my redundancy at Phones4U via Sky News while at a FooFighters concert.
I sincerely hope all those affected keep their heads held high and get settled shortly.
Well, I guess Times Like These can bring out the Best Of You. Either that or its a Long Road to Ruin.
Well played sir, All my Life I’ve waited for a comment like that, now please, let’s just Let It Die.
I hope you find something soon. But, a great way to make you forget for 2 hours!
This article does not surprise me one bit – although I feel very sorry for all those affected 🙁
I worked for LSL for 7 years and chose to leave in 2017, heading back to my independent roots – one of the best decisions I ever made! It became pretty clear to me in 2016 that the moment the money stopped rolling in and profits dwindled, there would be no hesitation from LSL in wielding the axe…
Make no mistake, this is a corporate organisation every bit as ruthless as the worst of them!! To be happy to constantly soak up profits in a good market (and never openly reward staff with bonuses or pay rises unless they threaten to leave) and then provide no support when the times get tougher just about sums them up!!
Whoever loses their jobs in this situation keep your heads high – chances are you will find something better very quickly and my top tip would be always go with the independents!!!
Agreed MrIndependent.
I had 3 years there in the south east and the management from area manager to MD were a joke. They paid staff poorly and let their offices deteriorate.
“and then provide no support when the times get tougher”
I left Your Move in September 2018 for this exact reason. Our poor acting manager, a neg who had the role forced upon them, was constantly under pressure to improve the stats over a matter of 2 months, with 2 new starters in a 4 worker office. She was given no guidance, no plan to improve, was expected to do the impossible and went home in tears daily.
I texted her yesterday as soon as I got the PIE notification about what was going down, she told me they had just been told that same morning and that she will know if she has a job in 2 weeks. Later that day, she texted saying the branch was being closed. It had a refurb in August 2018.
What a s**t show of a company, **** them right in the ear.
Couldn’t agree more, typical corporate mentality, profit before people. If informed via sales call then that tells you all you need to know, disgraceful!
I started at Your Move in 2005. I left in 2008, after having my nanager and assistant manager leave with no notice and having to try and keep the branch running with me, a pregnant FA and a new starter who stopped showing up one day. As a ‘reward’ I was placed on a valuers training course by the area manager and would be given a pay rise of £1k when I completed it and was valuing. The new manager refused to give me the pay rise on the basis that I was the ‘reserve’ valuer. Fortuantely the area manager over-ruled him, when he was let go and it was found out I hadn’t got it.
But when found out that the new neg, with no experience was being paid more than me, I decided to leave. They closed the branch about a month or so after I left.
Subterfuge with a capital S Unprofessional and a disgrace A company to avoid at all costs Regime change required
Do you mean Mr.S.E. amongst others?
They have now got the remaining staff thinking that every time they are invited to a mandatory training session it’s actually going to be a redundancy meeting. Not at all good for staff morale.
There must be an ex-countrywide employee at LSL organising the conference call communications. Shocker
You beat me to it.
Exactly how Countrywide do it.
Countrywide never have the balls to do it face to face they hide on calls.
I hope all concern find new roles.
Is there a list of which branches are closing?
What a truly horrific way of finding out. There is no really good way of letting people go, but, this way is like tossing the remains of drive through take out from a moving car.