Multi-disciplinary design firm HBO+EMTB which has 23 offices across Australia, New Zealand and Asia has announced a major restructure which will affect eight percent of the current workforce.
The offices which will be spared redundancies are China, India, Singapore, the Philippines and New Zealand where average wages are considerably less than Australia.
The domestic restructure will involve the appointment of voluntary administrators to some companies within the group however the main business and brand will continue to operate as normal.
The Australian business, which has grown to more than 30 companies over several decades, will be streamlined to four operating units structured along functional lines, namely, architecture, interiors, urban and landscape design and consulting.
HBO+EMTB CEO Kevin Fitzgerald said the restructuring was necessary to ensure a sustainable and profitable future for the company.
“This is about ensuring the business has the right corporate structure to prosper and grow in the domestic market.
“Domestic market conditions have been generally poor since the onset of the GFC in 2008. The federal government’s stimulus package for the industry through the schools program was successful in insulating the building and design sector from the worst effects of the GFC. But as that initiative washed though some time ago the underlying domestic demand has been weak for an extended period. The business needs to change.
“I am confident this restructuring will secure the future for the company and allow us to continue delivering high quality services to clients,” he said.
The restructuring will not impact any current projects and all Australian offices will remain open. The restructuring is in response to challenging business conditions and is designed to consolidate an "unwieldy and complicated corporate structure".
