Mobico Group, the parent company of National Express, has announced significant job cuts across its UK back-office and support functions as part of a sweeping cost reduction programme.
Profit Warning and Share Plunge
The transport giant confirmed that its full-year underlying operating profits are now expected to land at the lower end of its £180 million to £195 million forecast range. This announcement triggered a dramatic sell-off, with shares plummeting as much as 14% during trading on Wednesday, 26 November 2025, before partially recovering.
While the exact number of roles affected and their locations remain undisclosed, the company stated that the cuts are a direct response to challenging trading conditions. A key driver is the plan to merge its struggling UK coach operations into its more profitable Spanish business, Alsa, from January next year.
Market Challenges and Revenue Declines
Mobico pointed to a perfect storm of issues impacting its performance. In the UK, the core coach market is suffering from intense competition on key routes, leading to a 7.4% drop in third-quarter coach revenues. The group has also sold off several loss-making UK coach businesses, including Clarkes of London, The Kings Ferry, Lucketts, and Worthing Coaches.
The UK bus division fared little better. Although overall bus revenues saw a modest 2.9% increase, this masked a more worrying trend: both passenger numbers and commercial revenue fell by 3.7%, which the firm attributes to lower consumer confidence.
Problems have also emerged in North America, where a loss-making contract with its WeDriveU transit and shuttle services business is dragging on the group's overall results.
Leadership and Recovery Strategy
Executive Chairman Phil White, who returned to lead the company earlier this year after a series of profit warnings led to the departure of former CEO Ignacio Garat, is spearheading the turnaround. The company's stock has been under severe pressure, down a staggering 74% over the past 12 months.
Mr White stated, "We continue to focus on simplifying and strengthening the group, taking decisive actions to improve operational and financial performance." He outlined the strategy, which includes the large-scale cost savings programme, leveraging best practices from the successful Spanish Alsa business, and exploring options to monetise assets of the UK bus division.
Despite the widespread challenges, there were some positive notes. Group-wide revenues actually grew by 5.4% in the last quarter, driven by a 4.1% revenue rise in the Spanish Alsa division and a 14.3% surge in turnover from its German rail arm.
