BUSINESS

SNC-Lavalin Layoffs To Hit 4,000 Employees, Or 9% Of Total

11/06/2014 07:55 EST | Updated 01/06/2015 05:59 EST
AFP via Getty Images
A view is seen on April 13, 2012 of SNC-Lavalin's headquarters in Montreal, Quebec. Police on Friday raided the headquarters of a Canadian engineering firm with dealings in Moamer Kadhafi's Libya and loosely linked to a failed plot to smuggle the ex-dictator's son into Mexico.The Royal Canadian Mounted Police executed a search warrant and the company is cooperating in the investigation, SNC-Lavalin said in a statement. 'The warrant relates to an investigation of certain individuals who are not or are no longer employed by the company,' it added. An AFP correspondent at the scene said all access to the building at Rene Levesque Boulevard West in downtown Montreal, which also houses a US consulate, was blocked. SNC-Lavalin last month fired its chief executive, Pierre Duhaime, after his 23 years with the company, amid accusations he allowed $56 million in payments to foreign agents for undocumented work. AFP PHOTO/GUILLAUME LAVALLEE (Photo credit should read Guillaume Lavallée/AFP/Getty Images)

MONTREAL -- SNC-Lavalin says it will reduce the company's global workforce by 4,000, or nine per cent of the total, over an 18-month period starting in 2015.

The Montreal-based engineering and construction company (TSX:SNC) says the job cuts are part of its ongoing efforts to get out of underperforming business segments.

About three-quarters of the downsizing will be directed at SNC's activities outside of Canada.

SNC-Lavalin is one of the world's leading engineering and construction group, with offices in more than 50 countries and about 45,000 employees worldwide serving a variety of industries.

The company has been working for several years to overcome the impact of alleged corruption among some of its former senior executives.

The downsizing was announced with SNC's third-quarter financial results, which showed an overall profit due to its investments in major infrastructure businesses and a reduced loss from engineering and construction activities.

Net income for the three months ended Sept. 30 was about $69 million or 45 cents -- compared with a loss of $72.5 million or 48 cents per share in the third quarter of 2013.

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