The Kerry Stokes’ mining and construction industries services group WesTrac is slashing 630 jobs, reducing its work force by another 16 per cent.
This is in addition to the 375 jobs which went earlier this year at a cost of $8 million.
WesTrac, the Seven Group’s heavy machinery and caterpillar dealer, has been the star earner for the Seven Group during the mining boom.
However, the company now says its earnings this financial year will be 30 per cent to 40 per cent of the previous year.
The latest round will cost $13 million and will be implemented next month, leaving a work force of 3,350 across Western Australia, New South Wales and the ACT.
WesTrac says market conditions continue to be challenging. The cuts will be done by not replacing departing staff, reducing contractors and redundancies.
The company told the ASX: “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 alone have not been sufficient.”
In the 12 months to June, WesTrac reported sales of $4.1 billion, up 16 per cent on the previous year.