Elders has announced it will shed 75 jobs from its Adelaide head office by September 30 and will cut two seats from its board.
In a statement released to the Australian Stock Exchange, the rural services company said it was undertaking several initiatives to reduce costs and to reset "core back office capability and capacity" to levels appropriate for current and anticipated business conditions.
The initiatives will result in the loss of 75 roles in the Corporate and Network Support functions based in Adelaide before September 30.
“Whilst there is, and always will be, a focus on reducing spend across the business, these cost reduction initiatives will not impact headcount in the branch network or customer facing roles,” Elders CEO Malcolm Jackman said.
“Within the branch network we continue to focus on the Cost to Serve and SalesPlus+ initiatives we launched in 2010.
“David Goodfellow, Group General Manager, Australian Network and his leadership team are very focused on driving sales, margin and profitability across the network, as well as improving the customer experience”.
“We need to manage the Corporate and Network Support functions in line with market conditions, also recognising the reduction in the size and complexity of Elders that has been achieved as we've divested non-core businesses in recent years" said Mr Jackman.
“A leaner, more focused head office team better serves our branches and customers”.
Elders Chairman John Ballard also announced a reduction in the size of the board.
He said Ray Grigg and Anna Buduls had volunteered to retire from the board, as the directors believed that the interests of Elders and its shareholders were best served by a smaller board.
“I would like to thank Ray and Anna, and acknowledge their contribution to the Board and their service to shareholders, during what has been a period of significant change,” said Mr Ballar said in Elders statement to the ASX.