Babcock and Brown to cut 850 jobs

Troubled investment bank Babcock and Brown plans to cut about 850 jobs as it seeks to pay off debt.

The company currently has around 1,450 employees worldwide and plans to reduce staff numbers by about 60 per cent to 600 people by 2010.

The debt laden company will also reduce operating costs by more than half.

Babcock and Brown chairwoman Elizabeth Nosworthy says the move is the best way to reduce debt.

"As we have progressed the 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 said.

"We intend to repay debt through the orderly sale of the non core businesses and assets and reduce our operating costs to create a sustainable base which matches the focus of our ongoing infrastructure investment business."

About 2:00pm AEDT Babcock and Brown shares slumped by nearly a quarter, to 25 cents.

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Wed 19th November 2008 - 03:27pm