Logistics group Toll Group defends plan as job axe swings

TOLL Group has defended plans to take the axe to its workforce, saying job cuts will help bolster its competitiveness and create “a more ­efficient organisation”.

Toll managing director ­Michael Byrne.

TOLL Group has defended plans to take the axe to its workforce, saying job cuts will help bolster its competitiveness and create “a more ­efficient organisation”.

The Melbourne-based logistics heavyweight, owned by Japan Post, will cut up to 200 jobs in Australia as it wrestles with “challenging conditions”.

But the cuts could yet go far deeper, according to rumours engulfing the group.

Unions were yesterday seeking emergency meetings with management amid reports Japan Post was planning to cut between 1500 to 2500 jobs in an attempt to rein in losses at Toll.

Toll managing director ­Michael Byrne said the group had carried out a review “to improve productivity”.

The outcome would “strengthen Toll’s competitiveness and result in a more ­efficient organisation”, the group said in a statement.

It will cut 180 to 200 jobs in Australia, mainly among management, support staff and “back office” staff.

There is a hiring freeze for another 120 jobs that are ­vacant, Business Daily believes.

Toll said the job cuts in Australia reflected “ongoing challenging conditions in the domestic network market”.

“Our Asian and domestic contract businesses continue to perform strongly,” the group said.

Toll is understood to be continuing its efficiency review globally, suggesting more job cuts could follow.

Macca’s view

The group employs about 40,000 people over a network of 1200 sites in more than 50 countries.

Japan Post stormed into the Australian market in May 2015, striking a deal to pay $6.5 billion for Toll — a 127-year old company that had become the nation’s biggest transport and logistics group.

It comes as competition rapidly intensifies in the parcel delivery market and other national postal authorities also look for growth opportunities outside their home market.

Singapore Post has also pushed into the Australian market while Australia Post, under chief executive Ahmed Fahour, has struck deals to help Australian businesses export into China through prominent Chinese online ­retailer Alibaba.

Mr Byrne said customer service would not be impacted by the cuts at Toll.

“Our aim is to not only drive improvements in the short term, but also continue to build our global supply chain strategy to offer our customers a competitive advantage,” he said.

“As part of a recent review to improve productivity, we have started talking with our employees about a proposal that will see from 180 to 200 roles impacted.

“This is not a move we take lightly. We will fully support employees impacted by these changes, including offering ­redundancy entitlements, ­redeployment opportunities where available and career transition support.”

As home to the group’s headquarters, Melbourne was likely to feel the brunt of the cuts, sources said.

Japan Post lured Mr Byrne, a former head of Linfox Logistics, to Toll last December. It also installed Telstra chairman and ex-Asciano chief John Mullen as executive chairman.

The Transport Workers Union said it would be meeting with delegates and Toll in coming days “to consider, in consultation with the workforce, the redundancies, ­including job transfers and ­redundancy proposals”.

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