Fletcher mulling job cuts: report

Building group may move jobs to NZ as resources exposure weighs.

Fletcher Building (FBU) chief executive Mark Adamson has reiterated the group's push to consolidate the group's local unit, flagging the possibility of moving several Australian roles offshore to New Zealand, The Australian reports.

According to the newspaper, Mr Adamson said the resolution of next month's federal election would not necessarily alleviate all of the challenges facing the country's construction market, especially as the local resources sector encounters tougher global competition.

"I think building products is going to be a tough gig for the next few years in Australia because the single family dwelling where we all made our money isn't as pre-eminent as it once was, dwellings are getting smaller and everything is high-rise," Mr Adamson said.

The Australian reports only a fifth of Fletcher Building's business is exposed to the resources sector, however, Mr Adamason said there was a "flow-through effect" noting the mining boom had brought with it higher costs and inefficiencies. 

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles