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‘EAP line off the hook’: Inside top defence contractor Ventia’s day from hell as staff reveal the execs axed in redundancies – and the boss on ‘extended stress leave’
Ventia announced a major restructure after a ten-week review by new chief executive Mark Ralston, combining its operations into three sectors and cutting around 350 jobs. The plan and a warning that second-half revenue would fall year on year sent the infrastructure company’s shares down 16.2 per cent, making it the ASX 200’s worst performer that day.
The changes take effect on 1 December and are expected to cost $30 million while generating annual savings of $60 million by December 2027. Telecommunications, traditionally Ventia’s most profitable stream, will join Energy and Digital Infrastructure; the company cited delayed work, undecided project awards and difficult conditions in telecommunications and energy. Despite the revenue warning, Ventia retained its forecast for underlying profit growth of 7 to 10 per cent, excluding restructuring costs. The article reports that at least ten staff were told they were redundant at the North Sydney office, and names executives Derek Osborn and Sarah Palmer among those leaving; the status of CFO Alex Cockerton, reportedly on extended stress leave, is unclear.
In short
- Ventia plans to cut about 350 jobs.
- Shares fell 16.2 per cent after the announcement.
- The company expects annual savings of $60 million by 2027.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the restructure could argue that combining operations and removing around 350 roles is a difficult but necessary response to delayed projects and weaker conditions in telecommunications and energy. They may see the projected $60 million in annual savings as a way to protect the company’s longer-term performance while retaining its forecast for underlying profit growth.
The case against
Critics could argue that cutting jobs and reshaping the business while warning of lower second-half revenue risks weakening expertise and morale, particularly in a traditionally profitable area such as telecommunications. They may also question whether projected savings justify the disruption and whether the company has explained clearly how the changes will protect staff and sustain performance.