Coates cuts 75 jobs

Coates Hire has blamed poor economic conditions for a move to restructure its business and cut 75 jobs.

Coates is Australia's largest equipment hire company and provides services to the engineering, mining, and construction sectors.

 

“Coates is making very small changes to its business in response to the current economic conditions that will result in 75 redundancies, many of them voluntary,” the company said.

 

“Some employees have already left as part of this process.”

 

The job cuts are the latest sign that services and equipment providers are also being hurt by a drop in commodity prices, with Ausdrill joining Coates in announcing poor business performance this week.

 

In an update to the market Ausdrill said there was currently a surplus of mining equipment, and the hire and rental business had been hurt by project deferrals and cancellations over the last six months.

 

A strategic review of Coates is currently underway and the company said the restructure was not related to the potential sale of Seven Group's 45 per cent stake in the business.

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