Boral announced this morning that it will shed another 700 Australian jobs before March:
The changes will see a reduction in employee numbers in Australia, resulting in benefits of approximately $90 million annually, with estimated savings of $37 million to be delivered in FY2013.
“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. Our more streamlined organisation will align with Boral’s operational footprint, which has become more focused through recent divestments, closures and capacity rationalisation activities.
“Regrettably, the changes will mean job losses at the executive level, in the corporate office, in divisional offices and in the businesses. Customer service will not be impacted by the restructure with the changes focusing on back office, managerial positions and support activities. We remain committed to our valuedriven strategy for customers through our sales and marketing excellence and innovation programs. We also remain focused on delivering leading practice safety performance and lean manufacturing.”
It’s not clear how many of the jobs will go in building materials and cement but that’s the lion’s share of the business and is where the executive restructure is transpiring. As we know, the RBA and Treasury hope that rate cuts will boost housing construction this year, absorbing the construction job losses that will come from the looming decline in mining investment. Basically they hope to turn this around:
Boral does not appear to believe it’s possible.