Australian developer Lendlease to cut about 740 jobs globally
AUSTRALIAN developer Lendlease will cut about 740 jobs globally, or about 10 per cent of its workforce, according to an internal memo on Tuesday (Jul 18) seen by Reuters.
The bulk of the cuts will be in the company’s international operations, according to the memo. Lendlease has roughly 7,800 employees across Australia, Europe, the US and Asia, according to its website.
Chief executive officer Tony Lombardo said in the memo that the developer would aim to grow its fund-management business, and focus on development projects, which supported that growth while “rightsizing (its) construction workbook around jobs that carry less risk and generate greater reward”.
Lendlease shares in Australia closed down 4.9 per cent on Tuesday, versus a 0.2 per cent decline for the broader Australian index.
A company spokesperson confirmed the decision via e-mail and said this was 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 spokesperson said.
The cuts reflect challenging times for the commercial real estate sector, which is battling a lower-occupancy hangover from the pandemic. At the same time, 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.
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