Finance Finance News WesTrac to cut 630 jobs

WesTrac to cut 630 jobs

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The heavy machinery distributer WesTrac is cutting 630 jobs over the next month.

In statement the share market, the company says the cuts will be implemented through redundancies, a reduction in contractors and natural attrition.

Its says the redundancy program will cost $13 million.

“This is in addition to the 375 position which were made redundant earlier this year in our NSW/ACT operations at cost of $8 million,” the statement said.

“Westrac has implemented a series of efficiency and productivity initiatives over the past 12 months in an effort to streamline its cost base, but these measures along have not been sufficient in view of continuing challenging market conditions.”

The company says it will be left with a workforce of about 3,350 in Western Australia, New South Wales and the ACT after the restructure.

WesTrac distributes heavy machinery manufactured by the global company Caterpillar.

It is a subsidiary from Seven Group Holdings, which also operates the Seven Network.

Seven Group Holdings has also downgraded its earning forecast for this financial year.

It expects its underlying earning for the period to be 30 per cent to 40 per cent lower than in the previous financial year.

It comes after Caterpillar last week moved to cut 200 jobs at its fabrication plant in Tasmania.