Preston Aug 3,2022(AE)Metricon, a troubled building company, will reduce its workforce by approximately 10% to combat the industry’s problems.
Acting Metricon CEO Peter Langfelder revealed that the top home builder in the country is restructuring its operations internally.
The corporation has begun a consultation process with its 2500 or so employees that will result in layoffs and a 9% decrease in the number of employees. That translates to about 225 jobs being eliminated.
In response to the housing demand that is anticipated to stabilise at pre-pandemic levels in the wake of the homebuilding boom over the last two years, the Melbourne-based company has begun a consultation process that will result in redundancies across the national business.
According to Mr. Langfelder, the majority of the impacted positions will be in sales and marketing at the front end of the company.
We need to carefully balance the pipeline of new builds with the construction side of the business, he said. “With the current headwinds buffeting the industry, specifically labour costs due to competition for skills, combined with present global material cost hikes and with our very strong existing pipeline of work,” he said.
Given the current environment and the challenges, we are working to restructure our front-end of the business.
should proceed effectively. Any of our employees who may be impacted by these planned changes will be taken care of by us, and they will continue to have access to the company’s resources.
“With more than 6000 site-starts planned for 2023, our future construction pipeline shows no indication of slowing down,” Mr. Langfelder stated.
The construction industry saw a perfect storm of issues during the past 12 months, including supply chain interruptions, a lack of trained labour, soaring material and logistics costs, and extreme weather occurrences.
Probuild, Privium, BA Murphy, Condev, ABD Group, Waterford Homes, and Pivotal Homes are just a handful of the household names that have suffered losses in the building business during the past 12 months.
Metricon, the largest home builder in the nation, ultimately reached a rescue agreement with its lender, the Commonwealth Bank, in May, which has put its financial situation under a great lot of scrutiny this year.
In May, the company’s co-founder and CEO Mario Biasin passed away suddenly from what the business later blamed to mental health difficulties.
Metricon listed 56 display homes valued approximately $65 million for sale in four states in July.