Engineering solutions company Sedgman have sent an email to staff members to notify them of job cuts within the company and asked its workers to apply for voluntary redundancy.
The email, which we received at Australian Mining by an anonymous tip, points to the ‘continuing downturn in the resources sector’ as a reason for the ‘measures to reduce costs and improve efficiency.’
The statement goes on to say that cutting expenditure, reducing travel and limiting recruitment have all been measures undertaken by the company but that ‘unfortunately these steps have not been sufficient and an initial review of our future order book indicates a reduction in employees will be necessary.’
Sedgman declined to comment on the email sent to staff when contacted by Australian Mining, but did confirm the company was ‘reviewing options to cut costs within its Australian business.’
A spokeswoman for the company told Australian Mining that the number of jobs expected to be cut ‘won’t be known until the process is complete at the end of the month.’
Founded in Brisbane in 1979, Sedgman has been responsible for the deliverance of projects like the Lake Vermont mine in Queensland’s Bowen Basin.
Current projects under the company’s care include a CDHPP expansion for Bengella Mining Company in the Hunter Valley and a three stage crushing and screening facility at McArthur River mine for Xstrata Zinc.
In August, Sedgman posted a revenue increase of 17.2% to $650.5m with a net profit after tax increase of 45.4%.
In a statement at the time, Sedgman’s managing director Nick Jukes said that while the company’s growth was very pleasing, ‘a softening in commodity prices and a high Australian dollar’ were likely to ‘dampen future growth in the short term.’
"We shall keep a watching brief on this environment.”
Sedgman employs more than 1000 people globally with offices in Beijing, Santiago and Johannesburg.