UK’s Rentokil to cut jobs, signals weakness in North American business By Reuters

(Reuters) – Rentokil Initial said on Wednesday it would cut jobs and warned of further weakness in its biggest North American market, sending shares in the British pest control company 14 percent lower.

The company, which generated about 60 percent of its revenue from North America last year, did not specify how many jobs would be affected by its cost-cutting plan. However, it said the measures were intended to tackle cost overruns as it moved past the peak season.

North American sales in July and August were lower than anticipated, and the company now expects organic business revenue growth of about 1 percent in the second half.

Rentokil and rival Rollins (NYSE: ) account for about half of the U.S. pest control market.

($1 = £0.7642)