Quickstep Holdings Ltd is announcing a significant restructuring of the Structures Business Unit and associated support functions at its Bankstown facility.

Structures Business Unit

Changes announced today will see a reduction in direct production headcount of approximately 20% and a reduction in operational support headcount of a similar amount.

A reduction in customer demand, driven by de-stocking and aircraft build rates, along with a carefully designed ‘level loaded’ production plan, provides Quickstep with the opportunity to transition from operating 3 shifts 6-days a week to 2 shifts 5-days a week. This change will drive increased consistency and therefore a higher level of productivity throughout the operating environment, while continuing to meet customers’ requirements for on time delivery and high quality.

The leaner production environment then enables a rationalisation of the operations support headcount. The smaller Operations Leadership, Quality, Procurement and Engineering teams will be supported by enhanced and new investment in technology. Detailed planning continues and will be finalised over the next 7-10 days.

Corporate Support Functions

A detailed review of the corporate support functions has been conducted in conjunction with the review of the operational functions to identify further opportunities to streamline the Company. A reduction of approximately 35% of the headcount will be implemented across all support teams. Improvements in systems and processes will support these changes without significant impact to the Company’s ability to service its customers and partners.

Engineering Development & Services Business Units

As announced recently, Quickstep’s Engineering Development business unit, which is currently focused on the design and production of UAS products for a range of customers, continues to make progress in this emerging market segment. As such this business unit is not impacted by the restructuring plan announced today.

Quickstep Services, based out of the Company’s Tullamarine facility in Melbourne, is also unaffected by the restructuring plan announced today. Whilst this business unit continues to have a growth focus it is also subject to ongoing strategic scrutiny in conjunction with key partners and customers.