Australia-based construction materials company Boral has announced a business restructure that will see 1,000 jobs cut, including IT roles, this financial year.
The restructure aims to deliver AU$90 million worth of benefits annually, and the company is expecting to save AU$37 million in its 2013 financial year alone. Boral CEO Mike Kane said that the company had become burdened with excessive overhead costs, and tough decisions had to be made.
As of June 2012, Boral employed 14,740 workers worldwide, with 8,730 staff based in Australia. Outside of Australia, the company has major operations across the US and Asia.
Among the job cuts, 185 positions will be lost as a result of Boral's "operational rationalisation initiative," as well as through IT outsourcing. According to a Boral spokesperson, around 50 of those jobs will be lost due to IT outsourcing.
The Boral spokesperson could not provide details on where these jobs would be outsourced to.
The company is also cutting 700 functional, operational support and managerial jobs in Australia, though it had already cut 200 of those in late December.
"Our more streamlined organisation will align with Boral's operational footprint, which has become more focused through recent divestments, closures, and capacity rationalisation activities," Kane said in a statement to the ASX.
The restructure will also result in the reshuffling of Boral's senior executive team. Robert Gates, who had been Boral's CIO, will assume the newly-created role of chief administrative officer, and will lead "corporate support functions of human resources, safety, environment, procurement, and IT," according to a statement by Boral.
Cost of the redundancies will amount to AU$60 million, which includes payouts to axed staff.
Updated January 16, 2013 at 5:35pm AEST: Added comments from Boral spokesperson.