EXCLUSIVE Market Insight: Beleaguered Toll Group tries a 'new operating model'
“It has begun.” That was a nice and short overnight message from insiders at Toll Group who ...
Up to 200 Toll Group staff are facing the axe as the Australia-based logistics company cuts costs to “offset challenging conditions” in its domestic market.
Toll managing director Michael Byrne said the company had begun discussions with employees that would see 180 to 200 roles “impacted”.
“This is not a move we take lightly,” he said in a statement.
“We will fully support employees impacted by these changes, including offering redundancy entitlements, redeployment opportunities where available and career transition support.”
The affected employees are predominantly in the company’s Australia operation, with a focus on back office, management and support roles.
“Our Asian and domestic contract businesses continue to perform strongly,” said Mr Byrne.
“The aim is to not only drive improvements in the short term, but also continue to build our global supply chain strategy to offer our customers a competitive advantage.”
Japan Post acquired Toll Group in May 2015 for $5.1bn as it looked to develop its international logistics operations.
In the nine months to December, the renamed International Logistics division reported year-on-year revenue decline of US$357m, down from US$4.95bn in the same period of 2015 to US$4.59bn; although it managed to cut operating expenses by approximately US$100m.
“Operating income decreased owing to factors such as decline in usage in the domestic network business, affected by the Australian economy, including a delay in economic recovery in the resource-related sector, and weak demand in international sea and air freight markets,” said Japan Post.