Lendlease to cut 740 jobs

The Australian developer is making significant cutbacks to align with their restructuring program.

Lendlease has announced significant job cuts, targeting its overseas divisions. They will be eliminating over 750 positions globally, with its international workforce, including 1,100 employees in the UK, facing the greatest impact.

Lendlease operates across four regions:

• Australia
• The Americas
• Asia
• Europe

Its European business, mainly the UK with a smaller presence in Italy, employs approximately 1,200 staff.

The company has indicated that approximately 5% of its Australian workforce and 15% of its global workforce will be affected by the job cuts. These reductions account for around 10% of the company’s total workforce.

The decision to implement these cuts is part of a five-year restructuring initiative launched by CEO Tony Lombardo in 2021. Lombardo acknowledged the difficulty of such decisions, recognising their direct impact on employees. However, he emphasised their necessity in order to enhance returns for shareholders and ensure sustainable careers for the remaining workforce.

Why?

The commercial real estate sector continues to grapple with reduced demand for space in the aftermath of the pandemic. Additionally, higher interest rates have dampened property values and increased borrowing costs, which has slowed down project commencements.