Building products maker, Boral has announced that it will cut about 700 jobs in its Australian operations by the month of March.

The company said that it has already made 200 positions redundant in Australia. The company is struggling to sustain its operations in a difficult industry and is planning to streamlining its operations and lowering its cost base to become sustainable. The company estimates that cutting 700 jobs at its Australian operations will allow it to save about $37 million this year and more form next year.

The Chief Executive Officer of the company, Mike Kane clarified the confusion over the matter and said that 700 redundancies will be in managerial staff and back office positions in Australia. Additional 300 positions have been set aside because they are not pure redundancies and are result of business restructuring, he expressed.

"Also embedded in there are a couple of categories of out-sourcing in both Australia and the United States where we're out-sourcing jobs. So those are not pure redundancies. These are jobs that are going to be picked up by third party providers and the roles will be transferred to them," said Kane.

Observers say that the company is cutting 700 jobs now but the total job cutting will be around by 2,420 during the entire 2013 worldwide.