Wolseley, the self-proclaimed world's largest plumbing and heating supplier, and parent company of BCG, Bathstore and Plumb Center, is slashing 2,000 jobs and closing over 200 branches in the UK.

The company made the announcement as it released trading figures for the three months up to October 31 - the first quarter of its financial year.

It gives no breakdown of which stores and brands will be affected, but it does highlight "a significant deterioration in revenue in the first quarter" for Bathstore. Plumb Center is relatively robust, the company says, but Build Center is suffering thanks to the sudden slowdown in new build housing.

Wolseley estimates that the cost cutting measures will have a price tag of £45m, but save the company annual costs of £80m. It has already reduced headcount by 170.

Trading profit across Europe was down by 50% in this period, with blame laid squarely at the UK market where revenue decreased by 10% and trading profit by 65%.

"Whie these results reflect a further deterioration in the business environment in the first quarter it was not unexpected and we continue to react swiftly to market conditions with aggressive but measured cost reduction," said group chief executive Chip Hornsby. "In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow to ensure the Group remains compliant with its banking covenants."