LLC -4.91%: Hit today after they announced large jobs cuts across their business, totalling ~10% of the global workforce (~740 jobs), with ~5% of jobs to go in Australia. The move is part of their transformation strategy to improve returns by ramping up funds management, focussing more on the development projects with lower risk and higher margins, all delivered through a leaner operating structure. It’s being reported the move will save them $80-100m annually from FY25, which is meaningful when held up against their expected ~$250m profit likely in FY23. LLC has been a struggling business for a long time with paper-thin margins and a risky model susceptible to large project losses. Today’s move is another step in the right direction to improve the operating metrics, and as recent shareholders, we view this as another incremental positive on their way to better performance from next year onwards, despite todays price action saying otherwise!
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