About 15 employees at CMA Recycling in Ringwood have lost their job this week, as a result of restructuring taking place in the company, Herald Sun reported.The layoff occurred amid an ongoing restructuring report from the company’s directors on the Australian stock exchange.
CMA reported weaker demand in the sector and challenging economic conditions in major markets reinforced its commitment to reducing costs wherever possible and concentrate on key operations in Australasia.
The company’s managing director John Pederson, in a statement, attributed the terminations to difficult trading conditions.
“CMA is rightsizing its operations, including reducing staff numbers in certain States to lower operating costs, however, the company will continue to have a significant presence across Australia,” said Managing Director John Pedersen.
“No metal recycler anywhere in the world is immune from the market forces now at work and we are determined to keep a close eye on costs and other aspects of the business which we can control,” Pedersen added.
The company, which has four sites across Melbourne – in Pakenham, Campbellfield, Bayswater, and the Ringwood plant – would not offer any comment regarding its plans for its other sites around Melbourne and Australia, according to its spokesman Ian Pemberton of P&L Communications.
The company’s Campbellfield and Bayswater sites have 10 to 12 and two employees, respectively. An employee from the Ringwood plant surmised that the downsizing is an effect of poor activity in the Chinese market.