Australian developer Lendlease to cut about 740 jobs globally
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Lendlease CEO Tony Lombardo said there was still more work to do to create sustainable profits.
PHOTO: THE BUSINESS TIMES
SYDNEY - Australian developer Lendlease will cut about 740 jobs globally, or roughly 10 per cent of its workforce, according to an internal memo on Tuesday seen by Reuters.
The bulk of the cuts will be in its international operations, according to the memo.
Lendlease has roughly 7,800 employees across Australia, Europe, the United States and Asia, according to its website.
Chief executive Tony Lombardo said in the memo that the developer would aim to grow its funds management business and focus on development projects, which supported that growth while “right-sizing our construction workbook around jobs that carry less risk and generate greater reward”.
A company spokesman confirmed the decision via e-mail and said they were part of a five-year turnaround plan. “The headcount reduction will not impact Lendlease’s project delivery or its targets for work in progress, completions and funds under management.”
The cuts reflect challenging times for the commercial real estate sector, which is battling a lower occupancy hangover from the Covid-19 pandemic at the same time as higher rates have hurt property values and increased debt-servicing costs.
Australia’s fourth-largest real estate investment trust recently limited how much investors could withdraw from one of its largest unlisted office funds. REUTERS
