Group 1 continues UK business restructure with 370 jobs at risk

US-based Group 1 is continuing its UK business restructure with the potential loss of 370 jobs by the end of June this year.

The top 10 AM100 company announced its latest plans to investors in the US as part of an analyst day presentation on February 13.

The business said the timing of the latest redundancies would be made between the end of the March-plate change in the UK and the end of June.

Group 1 has been restructuring its UK business since its £346 million deal to acquire Inchcape's UK dealerships, which was first announced in April last year.

Approximately 2,500 people moved across from Inchcape to Group 1.

The combined UK business has around 7,000 employees and the potential loss of 644 roles would amount to an almost 10% reduction in headcount.

Group 1 continues to face cost headwinds

A Group 1 UK spokesperson told AM: "Following the completion of the Inchcape Retail acquisition in August 2024 we commenced a review of our corporate support functions, which remains ongoing, to ensure that we remain in a strong position to serve our customers and OEM partners effectively.

"We have spoken directly with all the teams impacted, and our focus remains on supporting our colleagues by working closely with them during this transition.

“In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business."

The dealer group said it is looking to drive growth through integrating and optimising its existing business.

Acquisition of Johnsons Cars Toyota and Lexus dealerships

In addition, Group 1 confirmed it has recently completed the purchase of Toyota Liverpool, Toyota Southport, Toyota Wirral and Lexus Liverpool from Johnsons Cars Limited.

The spokesperson said: "This is an exciting opportunity to further our relationship and success with Toyota GB as a valued partner.

"These additional stores are a fantastic fit for us strategically and geographically and complement our existing Toyota Lexus stores.”

Daniel McHenry, Group 1 SVP & chief financial officer, presented an update on the UK business restructure as part of the analyst day briefing, which is publicly available and details the job losses that were made so far in 2024, with 274 positions made redundant in phase one and two of the UK business restructure.

These 2024 cost reductions saved an initial £15m, but the additional 370 redundancies up to the end of June are part of the third, fourth and fifth phase of restructuring to save a further £22m.

In the statement to analysts, Group 1 said 70 job reductions and a saving of £5m were made as of the end of February 2025 in order to “refocus corporate functions to decentralise and allow greater staff autonomy”.

The remaining 300 roles will save between £8-£12m and be reduced based on “agreed productivity metrics”. These are due to be completed by the end of June.

Additional cost savings for the overall £22m include a £5m saving from reducing Group 1's UK demo fleet, up to £2m from dealership closures, as well as £5m from procurement efficiencies.

Group 1 posted a 36.6% boost in gross profit performance across its UK business in 2024 to £451 million.

UK group revenues also increased, up by 36% to £3.3 billion over the same period.