MacMahon cuts staff and pay
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Mining contractor MacMahon Holdings has cut staff in response to a weakening resources sector.
Newly appointed chief executive Ross Carroll said staff cuts have been made since a company review was completed on October 31, but did not say how many staff lost their jobs.
The review began in August as market conditions began to tighten, he told shareholders at MacMahon's annual general meeting on Friday.
"This has, unfortunately, meant that some roles were made redundant," he said.
"While this has not been an easy process for our people, the changes we have put in place will be essential to driving business improvement and cost efficiency."
The company has also introduced a hiring freeze, reduced its office space and cut discretionary spending, Mr Carroll said.
In addition, executives have agreed to take a 10 per cent pay cut for the remainder of the 2012/13 financial year.
"It was essential that the executive management team lead from the top as we strive to reduce costs," Mr Carroll said.
The changes are expected to save more than $10 million, but that will be partially offset by redundancy costs, he said.
In September, MacMahon said cost overruns with a rail project in Western Australia, as well as the expectation of fewer contract wins, meant its profit for 2012/13 would be about half that of the previous year.
Former chief executive Nick Bowen quit on the same day the company cut its earnings guidance.
Chairman Ken Scott-Mackenzie told Friday's meeting the company would record a loss for the first half of the financial year.
"We expect a return to regular profit margins in the second half to achieve the company's earnings guidance," he said.