Macmahon axes 50 jobs
Macmahon Holdings has laid off another 50 workers under measures to restructure the business in the wake of losing its biggest contract.
The job cuts made late last week are understood to be across the board among overhead staff at the mining contractor. They follow the loss of about 45 positions before Christmas.
Further lay-offs, including a cull of management positions, are expected in coming weeks.
Macmahon is being advised by consulting firm KPMG on downsizing the company in anticipation of annual revenue falling to between $300 million and $400 million.
The company will lose $780 million in work - $260 million a year - from next month after Fortescue Metals Group consolidated two Pilbara iron ore mine contracts and gave the job to Downer EDI.
Macmahon executive chairman Jim Walker had already started cutting costs before the contract loss, including a coming move from its West Perth headquarters to a facility near Perth Airport. Mr Walker last week said the company would be looking to further slash overheads in coming months.
"We are looking at every opportunity to improve our productivity and reduce costs," he said in presenting first-half results.
"We are currently in the process of streamlining our business in line with the changing conditions to ensure that we are operating as efficiently as possible."
Macmahon's cost-saving efforts include attempting to sell idle equipment in what is a poor market, while management is in talks with financiers to renegotiate debt facilities.
The contractor reported a $112 million net loss after booking $124 million in impairments.
Macmahon's share price yesterday closed up 0.5¢ to 5¢.
