(Reuters) -Rentokil Initial said on Wednesday it would cut jobs and warned of further weakness in its largest market North America, sending shares of the British pest control company 14% lower.
The company, which generated approximately 60% of its revenue from North America last year, did not specify how many jobs would be impacted by its cost-cutting plan. However, it stated that the measures were intended to address cost overruns as it moved past the peak season.
North America sales in July and August came in lower than anticipated and the company is now expecting organic revenue growth from the business of about 1% in the second half.
Rentokil and rival Rollins (NYSE:) account for roughly half of the U.S. pest control market.
($1 = 0.7642 pounds)
