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Elders to cut staff by 10%

Elders (ASX: ELD) is feeling its age. The company announced today that it plans to cuts its overall staff by 10% as part of a larger effort to reorganize and streamline its business. The move comes as part of more than $25 million in cuts covering a variety of Elder’s interests, and is meant to reposition the company as a pure agribusiness.

In addition to consolidating some of its regional rural and branch offices into larger units, Elders has also completed the sale of Futuris Automotive and plans to make a clean cut from its forestry assets in the next few week.

As Elders makes its exit, other companies will be impacted as well. To get out of forestry, Elders will sell off its equity in Agricultural Land Trust (ASX: AGJ), and a 15 percentage point reduction in equity holdings to 10% of Elders Insurance will be snagged up by joint venture partner QBE Insurance (ASX: QBE).

According to Elders Managing Director Malcolm Jackman, “The Elders’ team in now very well placed to focus on the day-to-day needs of rural, regional, and international clients and to regain momentum as a business.”

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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