GrainCorp takes scythe to management layers as drought bites

GrainCorp has announced job cuts as it reduces management layers in a bid to reduce costs amid widespread drought.

A GrainCorp receival site in Victoria. Picture: Andy Rogers

GrainCorp has announced job cuts as the drought-affected company looks to reduce costs.

The company said the restructure would also help to deliver more relevant customer services.

In a statement to the market today, GrainCorp (GNC) said it would reduce management layers in country and port operations and remove duplication as it streamlines some of its other functions.

“Clearly the drought is a significant challenge, however we are acting to ensure a sustainable future for our business in eastern Australia beyond the immediate term,” managing director Klaus Pamminger said.

“Our fixed cost base must better reflect the volatile volume task we face each year and it must adapt to intense competition in lean years and good years.”

As part of the restructure, supply chain, planning, operations, customer and commercial management functions in eastern Australia will be streamlined to ensure that supply chain and customer service decision making is more effective, GrainCorp said.

“We must also continue to respond to our buyer customers’ priorities,” Mr Pamminger said.

“The feedback from customers indicates they like the changes we have made over the past 18 months, but they need us to be more focused with our service offering.

“We will continue to work with customers to deliver improvements to our service model that respond to the respective priorities of different customer segments.”

GrainCorp said it would work closely with employees directly affected by the changes and look to redeploy them where possible.