The building and development giant is set to make big cuts to its Australian operations
Global building and development company Lendlease is set to make big cuts to its Australian operations as it seeks to restructure its business.
Lendlease will slash between 300 and 400 jobs in an effort to realise about $160 million of annualised cost savings, according to a report by The Australian. While the cuts will be made around the world, the bulk of the lost jobs are expected at the company’s Australia headquarters.
The move is part of an effort by new CEO Tony Lombardo to make Lendlease more efficient and better integrate its regional operations, according to The Australian. The decision to cut jobs in Australia comes partly because many of the builder’s largest projects are in Europe and the United States.
While Lendlease declined to comment ahead of a strategy briefing scheduled for today, the cuts were expected as Lombardo looks to ramp up development in the wake of the COVID-19 crisis, The Australian reported.
Lendlease has been feeling pressure from investors to streamline its business and produce more steady returns after taking heavy losses on its exit from engineering.
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The company has a strong foothold in Australia, with projects including the new Medibank headquarters in Sydney and two luxury apartment towers being developed at Barangaroo, The Australian reported. However, the company said that its development unit is not trading up to expectations – a situation it hopes to reverse over the next two years.
The company’s share price plunged by 7% when it delivered its annual results earlier this month. Shares have since recovered, but Lendlease cautioned about the tough road ahead for the development division and the disruptions caused by COVID-19.
