Macmahon to cut 40 jobs

Mining service contractor Macmahon Holdings is set to cut jobs and alter work rosters.

The company said it had identified 40 roles that would no longer be required.

“Over the next couple of months those roles will be turned off,” a spokesman said.

The spokesman said most of the jobs to go were corporate rather than project roles.

Meanwhile, Macmahon will also make changes to work rosters at its Perth headquarters, with employees set to work a nine day fortnight instead of a ten day fortnight from June.

"We're doing that so we don't have to make any more roles redundant," the spokesman said.

"It's an interim measure that's going to be reviewed on a regular basis and we'll revert back to a full time roster when the business is ready to do so."

The company has had a turbulent six months, as the mining industry contracts and levels of work decline.

January saw the sudden departure of long term managing director Ross Carroll and deputy chairman Barry Cusack.

Then in February it lost a major $260 million contract at Fortescue’s Christmas Creek operation after FMG consolidated two separate contracts into one, awarding the single contract to rival Downer EDI.

This put around 700 jobs at risk, and followed on from the company cutting 40 jobs at the same site the previous week.

However in a turn in fortune for the workers Downer did announce it was would be retaining around 400 staff from the existing Macmahon workforce on site.

In December Macmahon also cut around 40 jobs from its workshop at Perth airport.

In the background of these local shakeups, the contractor was also embroiled in a dispute in Mongolia regarding more than US$20 million in overdue payments at Erdenes Tavan Tolgoi coal mine, which resulted in a total work standstill.

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