Resources Equipment sheds jobs

Resources Equipment has cut 41 jobs from its Welshpool Branch following a company restructure.

The mining service provider said 23 permanent and 18 casual positions would be affected.

The company said the decision would result in an annualised saving of $4.5M at a cost of $474K in redundancy termination payments.

“The board is confident that through the change the company has retained core capability and the flatter structure will enable a faster more streamlined delivery to customers,” REL said in a statement to the ASX.

Last week REL said that following the on-market takeover bid by Pump Services, it intends to seek to delist from the ASX.

It said it will allow minority shareholders to decide whether to realise their investment by way of selective capital reduction or buy back at the same price as the bid price, being 26 cents per share.

Any such action is subject to further analysis and dialogue with the ASX.

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