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Major company restructure by WorleyParsons

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Engineering company WorleyParsons has announced plans of a restructure that will split the group into three divisions.

The changes, to take effect next month, will see three new operating arms to be known as Services, Major Projects and Improve.

A fourth division will focus on innovation and managing capital.

CEO of the company Andrew Woods said the changes aimed to align the business to market conditions.

“It will simplify the corporate structure, reduce overhead costs and enable our staff to deliver greater customer satisfaction. The reorganization is expected to improve major project performance, deliver sustainable growth in earnings and enhance returns to shareholders,” Woods said.

The move follows several profit warnings last year following a decrease in demand for resource infrastructure in the “once buoyant Western Australian market”.

The company’s shares fell over 25 per cent in November following the announcement that it revised its FY14 guidance down to between $260 million and $300 million.

Woods told Fairfax Media management wanted to "get out the way" of staff and empower them.

"What's crept in over the last couple of years is more of a focus on process and systems which has bogged down our people,” he said.

“We are refocusing the business on what we have been known for in the past – an intense focus on our customers and project delivery, and enhancing value for our shareholders.

“The reorganization is not only a structural change, it is also about cultural change to improve the way we do business and allow our staff to support our customers in being successful.”

Under the changed structure Services, which represents 70 per cent of the group revenue, will continue to provide consulting and delivery services.

Major Projects will be responsible for winning and leading the execution of large or complex projects worldwide, while Improve will be responsible for the leadership and execution of nominated long term operational and asset management contracts, as well as winning new contracts.

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