Rail operator Aurizon will cut costs by more than $230 million over the next two years in a move which will see job losses and property sales.
The company formerly known as QR National announced it would move to cut $70 million in labour costs over the next 24 months however the total number of positions to be affected has not been disclosed.
‘Labour flexibility’ is high on the agenda with the company set to renegotiate enterprise agreements over the next two years, SMH reported.
The company also said it planned to cut real estate costs by up to $25 million by selling property it no longer needs.
In a presentation to analysts, chief Lance Hockridge said the cost cutting measures were aimed at delivering positive outcomes for shareholders and customers.
Aurizon has made a number of job cuts over the past few years with most coming from voluntary redundancies.
Hockridge has previously said that company had staff levels that were higher than needed, which results in “high corporate overheads and bureaucratic structures”.
“Our cost base is too high when compared to competitors and rail industry peers,” he said.
“While QR National continues to grow we need to better serve customers and improve our operating and financial performance if we are to safeguard an ongoing strong future for our company, our employees and shareholders.”