Graincorp cuts jobs because of drought

Graincorp will cut an unspecified number of jobs at its eastern grains unit in a bid to cut costs after harvests were hit by the region's savage drought.

Graincorp will cut jobs at its eastern grains unit in a bid to cut costs after harvests were hit by the region's savage drought.

Australia's biggest listed bulk grain handler has told the ASX it will streamline operations and reduce layers of management in response to what it called a challenging operating environment.

General manager for grains, Klaus Pamminger, said the change was necessary.

"Clearly the drought is a significant challenge, however we are acting to ensure a sustainable future for our business in eastern Australia beyond the immediate term," Mr Pamminger said.

"Our fixed cost base must better reflect the volatile volume task we face each year and it must adapt to intense competition in lean years and good years."

GrainCorp did not say how many jobs would go, but said some redeployment of workers was possible.