Caltex Australia to Axe 10% of Work Force in Next 12 Months
By Vittorio Hernandez | August 26, 2014 9:29 AM EST
Fuel distributor Caltex continued to downsize its Australian operations, announcing on Monday that it will further cut 10 per cent of its work force in the next 12 months. The 10 per cent is equal to 350 jobs that will be shed as part of Caltex's restructuring.
In 2012, Caltex axed 400 jobs when it shuttered its Kurnell refinery in Sydney. The changes aim to make the firm competitive and perform better, said Caltex Chief Executive Julian Segal.
"This is not just a cost out program but a holistic review of operations and efficiency across the whole organisation," Segal said.
He added, "We have been around for more than 100 years ... the way we have done that is to adjust to the type of environment in which we operate."
The closure of Caltex's Sydney refinery is part of the move of the company from fuel refining as it concentrates on distribution and marketing.
Of the 350 jobs to be lost, 115 would come from Caltex's marketing business, 120 are those performing corporate support functions and the rest from other parts of its business across the supply chain.
Caltex also announced that its first half net profit increased by 1 per cent to $173 million.
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