Boral has announced it will outsource its IT as part of a company-wide restructure which will see up to 1000 jobs cut.
As part of operational rationalisation initiatives and IT outsourcing, 185 jobs will be cut.
The building company will cut around 1000 jobs from its workforce in the FY2013 – 6.8 per cent of its global workforce of 14,740 employees at 30 June, 2012.
A total of 700 jobs will be cut from the company’s Australian division, with 200 redundancies that have already taken place last year.
The outsourcing comes on the back of an IT transformation project headed by CIO Robert Gates to reduce costs.
Gates will move to the newly created role of chief administrative officer from 1 February, 2013, “leading corporate support functions of human resources, safety, environment, procurement and IT,” Boral said in an ASX statement.
The restructure is expected to save Boral around $90 million per annum, with around $37 million in savings during the FY2013.
“My 100-day review of the business highlighted the need to make some tough decisions. This is a great company, with a great history and great potential. However, over time, it has become burdened with excessive overhead costs. While this may be less obvious during the good times, it becomes critically exposed when times are tough,” Mike Kane, CEO and Managing Director, said in a statement.
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