Bathla Group, which has around 350 employees, announced the workforce reduction at an all-staff meeting. Many of those affected are workers on visas.
The move means more than half of Bathla’s workforce has been stood down as the company struggles to keep its operations running.
Short-term funding keeps some jobs and projects going
Bathla’s administrator, Teneo, secured a short-term funding agreement with five lenders. The funding will allow construction to continue on projects linked to those lenders for another two weeks.
Construction on other projects has been suspended, leading to the employee stand-downs.
Administrators have not disclosed the identities of all five lenders or which projects are covered by the agreement. The funding is understood to be between $3 million and $5 million.
Administrator Stephen Longley said, "The arrangements agreed today allow us to provide the central support required for construction to continue on projects associated with the lenders participating in the funding package.”
"Significant work remains to secure the funding required to progress and ultimately complete all projects currently under construction,” Longley added.
"We will continue to work closely with lenders and other key stakeholders to pursue those arrangements,” he also commented.
Workforce faces continued uncertainty
Bathla entered administration in late August after being unable to meet its $3.4 billion debt obligations.
Administrators previously revealed that some employees had gone without pay for as long as eight weeks before an emergency funding deal helped meet the company’s payroll obligations.
With construction support estimated to cost between $1 million and $1.3 million a week, administrators are now prioritising projects backed by lenders willing to provide funding.
The latest stand-downs leave hundreds of Bathla employees facing uncertainty over their jobs as administrators work to secure further funding and determine the future of the property developer.