Building products supplier Boral has announced that it is shedding 700 jobs, following a 100-day review by CEO Mike Kane of the business.
Slightly over eight per cent of the company will lose their jobs in a restructure that is hoped to make the company more competitive. Of the 700 jobs cut, 200 have already been announced and the rest are expected to be gone by March.
‘The restructure I am announcing today will transform the group into an organisation that is more responsive to the realities of a cyclical marketplace and one that remains competitive not just during the cycle highs but when conditions are challenging, as they have been for the past few years,’’ AAP reports Kane as saying.
A significant number of the jobs lost will be in Victoria. This follows December’s announcement, reported by Manufacturers’ Monthly and others, that Boral was closing its clinker factory at Waurn Ponds, with 90 jobs cut.
“Around 20 per cent of the roles will come from Victoria, or about 150,” a spokeswoman told news.com.au
Mike Kane was named as Boral’s CEO last September, and immediately announced that, "My immediate priorities are to work with Boral's management team to continue to strengthen Boral's financial position by maximising cash generation, further aligning Boral's operational portfolio and delivering benefits from our LEAN manufacturing initiative.''
The redundancies will incur a $60 million one-off cost, with annual savings of $90 million. The ABC reports that 1,000 jobs in total are expected to go from the company over this financial year.