Australia-based developer and contractor Lendlease said that it is cutting 10% of its staff, with most of the reductions coming in its international operations.
About 740 staff members are likely to be cut. The company began notifying employees earlier this week.
A Lendlease spokeswoman indicated only 5% of its Australian workforce will be impacted while 15% of company staff in Europe, Asia and the Americas will be cut.
The company also said layoffs won't impact project delivery or targets for work in progress, completions and funds under management.
Global CEO Tony Lombardo has been carrying out a five-year turnaround since he took the top job two years ago.
“It’s never easy making decisions that directly impact our people," he said in statement. "However, they’re absolutely necessary in order to generate more resilient returns for our security holders and sustainable careers for our ongoing workforce.”
Among the adjustments Lombardo outlined two years ago was in the Lendlease construction approach. He described it at the time as "rightsizing our construction workbook around jobs that carry less risk and generate greater reward.”
When it comes to risk and reward, Lendlease recently suffered a setback in its attempt to recover funds it is owed on a huge condo and hotel development in downtown Los Angeles that stalled in 2019.
In February, a state court judge rejected the company's attempt to have priority among the various liens filed against the developer, China Oceanwide Holdings. Last month, the Beijing-based developer defaulted on a $157-million loan it had taken for the project, according to the Real Deal.
