Struggling contractor VDM Group has cut 40 jobs and has warned staff to expect more redundancies, as its restructuring efforts shift into top gear.
The company announced in July it would focus its operations on procurement and mining, and today officially announced former CITIC Pacific chairman Dongyi Hua as its new managing director.
VDM said it had been forced to cut its staff after a disappointing $83.4 million full year loss, which was exacerbated by a major dispute at one of its minesites.
“The company realises that it does need to change and to improve the way we work, how we deliver and how we manage our contracts, and more specifically, how we want to differentiate ourselves from our competitors,” VDM chairman Michael Perrot said in a statement.
VDM shares closed trade today at 0.9 cents, a 12.5 per cent gain.