Babcock & Brown to slash workforce in shift to infrastructure investment

20 November 2008

Babcock & Brown is to reduce its workforce to almost a third of its size over the next two years as part of a new restructuring plan.

The investment fund announced that it is looking to employ 600 people by 2010, down from the 1,600 workers recorded by the organization in June of this year.

Approximately 150 people have already left Babcock & Brown in the last few months and further cuts will be accounted for through the selling off of assets and redundancies.

It is hoped that the business restructuring will halve the company's operating costs, a reduction of approximately $150 million.

Chairman Elizabeth Nosworthy suggested that the plans were designed to please shareholders following a strategic review.

"We have concluded that simplifying our operations to focus on our unique global infrastructure business is the best way to reduce debt levels and begin to restore shareholder value," she remarked.

Babcock & Brown announced this week that it has sold off its portfolio of jointly-owned Portuguese wind farms.

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