Nomad Building Solutions' managing director has stepped down and its Queensland donga business mothballed as the company moves to slash overheads.
Peter Hogan resigned as managing director but will stay on the board as a none-executive director, Nomad said.
Chief financial officer Andrew Sturcke will take on a dual role by becoming chief executive role as well.
Nomad said the changes and other initiatives would cut annual corporate overheads from $3.9 million to $900,000.
The company suffered a $600,000 loss in the September quarter.
The Queensland business, called Nomad Eastern States, has been put into care and maintenance and its workforce sacked.
Nomad said the unit was tipped to lose $400,000 a month if it kept going.
"The combination of poor industry wide demand and the lack of available larger projects has resulted in intense competition at unacceptable margins and returns on shareholder capital," Nomad said.
"Several competitors have recently closed or substantially reduced their factory operations, or alternatively are manufacturing stock to keep their operations open.
"The near-term outlook continues to be bleak in a very competitive market coupled with a severely reduced pipeline of opportunities."
Nomad said it was close to finalising a new banking agreement for guarantees
"The board expects improved predictability in earnings going forward due to the stability in the two remaining businesses of McGrath Homes and Nomad Rental."The company's shares closed down 1.2 cents, or 14 per cent, to 7.5 cents.