Lendlease Shifts Focus to Australian Market Amid Financial Struggles

Lendlease, the multinational construction development company, is making a strategic retreat from its international operations to concentrate on its Australian home base. This significant shift comes after encountering financial difficulties and underperformance in several international markets, including the US, UK, and Europe.

To address these challenges, Lendlease plans to streamline its operations, reduce costs, and target $125 million in annual savings within the next 12 months. The company believes that simplifying its structure and focusing on its core Australian business will enhance shareholder value.

The decision to exit international markets has not been taken lightly, as it responds to increasing concerns from shareholders regarding the company’s direction and performance. These concerns have led to calls for a managerial overhaul and comprehensive restructuring.

Lendlease’s financial health in the upcoming 12-18 months will heavily depend on its ability to improve earnings, reduce debt, and successfully sell off assets. The company aims to enhance shareholder value through strategic debt recycling, implementing cost reduction measures, and returning capital to investors.

By concentrating on its Australian operations, Lendlease hopes to rebuild its financial stability and regain shareholder confidence, ensuring a more sustainable and profitable future.

Article Title: Development giant Lendlease culls entire international operation
Retrieved from apimagazine.com.au
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