CEO Tony Lombardo says in memo that developer will focus on growing funds management business and development projects.

Australian developer Lendlease will cut about 740 jobs globally, or roughly 10 percent of its workforce, according to an internal memo.

The bulk of the cuts will be in the company’s international operations, according to the memo. Lendlease has roughly 7,800 employees across Australia, Europe, the United States and Asia, according to its website.

CEO Tony Lombardo said in the memo on Tuesday that the developer would aim to grow its funds management business and focus on development projects, which supported that growth while “rightsizing our construction workbook around jobs that carry less risk and generate greater reward.”

Lendlease shares were down by 3.9 percent at about 02:00 GMT, versus a 0.5 percent decline for the broader Australian index.

A company spokesperson confirmed the decision via an email to the Reuters news agency and said it was part of a five-year turnaround plan.

“The headcount reduction will not impact Lendlease’s project delivery or its targets for work in progress, completions and funds under management,” the spokesperson said.

The cuts reflect challenging times for the commercial real estate sector, which is battling a lower-occupancy hangover from the pandemic at the same time as higher rates have hurt property values and increased debt-servicing costs.

Australia’s fourth-largest real-estate investment trust recently limited how much investors could withdraw from one of its largest unlisted office funds.