Service Stream cutting jobs: report

Service Stream Ltd, a key construction partner in the rollout of the national broadband network, is set to slash as many as 100 jobs, The Australian reports.

Service Stream Ltd, a key construction partner in the rollout of the national broadband network, is set to slash as many as 100 jobs, The Australian reports.

According to the newspaper, the cuts are aimed to offset the group's declining profit, which has taken a hit in large part due to its NBN joint venture Syntheo.

The Australian reports the redundancies have already begun, with the group reportedly using its ongoing trading halt to negotiate a withdrawal from the Synteho JV.

Syntheo, which is a 50:50 joint venture between Service Stream and Lend Lease Ltd, lost a key contract with NBN worth up to $341 million to build the network in the Northern Territory back in March.

Since then Service Stream has breached its debt covenant with its financiers and the stock has plummetted 67.8% to 14 cents before being put under a trading halt, pending the release of the company's impacted profit guidance.

Related Articles