Fletcher layoffs expected to save $30m
AUCKLAND: Fletcher Building has laid off about 90 staff, mainly in Auckland, as part of its restructuring to save $30 million each year, its boss says.
Chief executive Ross Taylor spoke more about the job losses after a halfday investor briefing in Sydney last week.
‘‘There’s been about $30 million in cost savings from salaries of the people who have left the business,’’ he said, referring to the amount, mainly salaries, the business would not now pay.
But the savings were not just from the reduced work force cuts, he stressed.
‘‘We’ve shrunk back to save money,’’ he said, referring to Fletcher’s rent bill having decreased because office space needs have reduced due to the smaller workforce, as well as savings in computer and IT.
The 90 staff were mostly in the head office at Penrose.
‘‘They had various roles in procurement, manufacturing excellence and group marketing and sales,’’ Mr Taylor said.
Fletcher shares last traded at $6.95, down nearly 2%.
At the investor briefing, Mr Taylor talked about the practical changes he was making, including simplifying the business.
He mentioned one example.
‘‘We’re trying to run the payroll system out of Penrose,’’ he said, adding that it was ‘‘hard enough’’ to run an Australianwide payroll system because of differences between states, let alone running it all from New Zealand.
Mr Taylor vowed to double Fletcher’s margins from its Australian businesses. Fletcher’s Australian margins have been compared unfavourably with Australian competitors, including CSR and Boral. — NZME