Employees of Leightons could soon find themselves out of work, with Leighton’s majority shareholder, Hochtief, announcing an extensive review that was likely to lead to job losses throughout Australia.
In a statement Hochtief said, ”As a result of the general review by Leighton already under way, some employees may become redundant.”
German based Hochtief, made the announcement at the same time urging shareholders to accept its $1.2billion takeover offer. The company suggested that operating brands such as John Holland and Thiess should be merged, disposed, or re-structured in order to pay down a $2billion debt.
The review could change the way Leighton Contractors, Thiess, John Holland, Leighton Asia, India and Offshore and Leighton Properties are managed as well as altering ”the number and functions of employees” as divestments of assets and businesses are considered, Hochtief said.
The Sydney Morning Herald reports: “Former Leighton executives have already raised fears that Hochtief will aggressively reshape the company… Analysts forecast Hochtief will replicate its new operating structure in Germany, dividing Leighton into new divisions such as infrastructure, mining and services.”
The Sydney Morning Herald also reports that Hochtief have said “changes to Leighton’s senior management were not ”currently” intended after getting rid of chief executive Hamish Tyrwhitt and chief financial officer Peter Gregg, it cautioned that further changes might be made after the review.”