Job losses likely as Lend Lease restructures divisions
It comes as chief executive and managing director Steve McCann signed on again, silencing speculation that he was looking to leave as his term was nearing expiry.
Mr McCann joined the company in 2005 and was appointed to the joint role of CEO and managing director in 2008.
Lend Lease is due to announce its full-year results on Friday. In June Mr McCann signalled profits of $540 million to $550 million for the full year, despite weakness in the construction sector.
At the time of the guidance, Mr McCann said the restructuring of its Abigroup and Baulderstone subsidiaries would lead to a duplication of jobs.
"As a result of the restructure of Lend Lease's Australian construction and infrastructure businesses, there will be some redundancies among salaried staff," a company spokesman said on Thursday.
In the June update, Mr McCann said the construction markets in Australia, Europe, the Middle East and Africa had softened in the second half of the year, contributing to reduced earnings from those regions.
The construction sector is the single biggest division for Lend Lease, contributing about 42 per cent of overall earnings.
Simon Wheatley, head of property research at Goldman Sachs, said his analysis indicated that the difficulty experienced by service-related business exposed to the domestic commodity market was likely to be limited for Lend Lease.
Frequently Asked Questions about this Article…
Lend Lease has warned that consolidating its construction and infrastructure businesses could result in about 250 to 300 job losses over the next few months, with the company saying there will be some redundancies among salaried staff.
The company says the restructure of its Abigroup and Baulderstone subsidiaries will remove duplication of roles created by overlapping operations. The move is part of a broader consolidation of Lend Lease's Australian construction and infrastructure businesses.
Lend Lease reported that construction markets in Australia, Europe, the Middle East and Africa softened in the second half of the year, which contributed to reduced earnings from those regions and factored into the decision to restructure.
Ahead of its full‑year results, Lend Lease indicated profits of about $540 million to $550 million for the year, despite acknowledged weakness in the construction sector.
Yes. Steve McCann has signed on again as chief executive and managing director, ending speculation he might leave as his term neared expiry. Mr McCann joined the company in 2005 and was appointed to the joint CEO and managing director role in 2008.
The construction sector is Lend Lease's single biggest division, contributing about 42% of the company’s overall earnings, according to the article.
Simon Wheatley, head of property research at Goldman Sachs, said his analysis indicated the difficulties experienced by service‑related businesses exposed to the domestic commodity market were likely to be limited for Lend Lease.
Lend Lease was due to announce its full‑year results on Friday. Investors should look to that results announcement for more detail on the company’s profit outcome, commentary on the restructure of its construction and infrastructure operations, and any further information about the impact on earnings and staff.
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