More consequences of Slater and Gordon’s disastrous spell in the UK market emerged today as the business announced job cuts affecting the firm’s Australian staff.
Directors of the company pulled out of the UK last month after haemorrhaging money trying to establish a greater presence in the UK. As a result the Australian side of the business today announced it will have to restructure.
In a statement to the stock exchange, Slater and Gordon said it will make cost reductions and structural changes and begin the process of consultation with impacted employees. Overall, around 7% of the 1,200-strong Australian workforce is affected and some offices may close. No UK employees are affected by the restructure.
The statement added: ‘The company believes that the implementation of a business-wide transformation plan, including cost reductions and structural changes, is necessary for the future sustainability of the Australian operations.’
The company ceded control to US hedge fund Anchorage Capital earlier this year after failing to stop losses largely stemming from the decision to buy UK-listed outfit Quindell in 2015.
The share price once peaked at more than A$8 a share but today shares trade at just seven cents.
Following separation from the UK business, which retains the Slater and Gordon name, existing shareholders ceased to have any interest in UK operations.
The future of the UK business, which employs more than 3,000 people, is expected to become clearer in the coming weeks.