Lendlease Australia announces layoffs affecting 10% of its global workforce
Lendlease, a construction company, is set to cut 740 jobs globally for international operations, which is approximately 10% of its total workforce.
The decision was announced internally to their 7,800 employees across Australia, Europe, the United States and Asia, on July 18, 2023.
Tony Lombardo, Lendlease Global CEO stated in this internal announcement the company 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. The greatest reduction will be in three international regions – America, Europe and Asia Pacific as they align with our permanent shift to being an investment-led company with a leaner operating structure, where resources are shared and not replicated in the market. It’s never easy making such big decisions – ones that directly affect so many of our colleagues”.
A company spokesman confirmed the news stating, “The headcount reduction will not impact Lendlease’s project delivery or its targets for work in progress, completions and funds under management.”
According to sources, the layoffs are expected to lead to a 5% reduction in the workforce in Australia and a 15% reduction in the offshore workforce. The decision serves as a cost-cutting strategy, projected to save the firm an estimated $80 to $100 million.
Moreover, on Monday (July 17, 2023), the company informed on the official website, about a partnership with Daiwa House, Australia to deliver a $6 million build-to-rent apartment development in Melbourne Quarter. The project is set to begin in August 2023 and is expected to be delivered by 2026.
Earlier this month, the construction firm had frozen the hiring process due to challenging conditions for property developers and concerns regarding escalating costs within the construction industry.
This layoff marks the second round of job cuts at Lendlease since Lombardo assumed the position replacing Steve McCann in 2021.