Ex Toll boss Paul Little comments on Japan Post write-down

Paul Little, former boss at Toll Holdings, has spoken out on the news that the logistics firm has been given a $4.8 billion write-down by owner Japan Post.
Japan Post recently reported a ¥40 billion (A$480 million) loss for its first full financial year as a listed company, arising from a ¥400.3 billion ($4.8 billion) write-down on the Toll, which it bought in 2015.
Speaking with The Weekend Australian, Little commented that Toll’s legacy had been “trashed” and the company would need a major culture overhaul in order to remain relevant, adding that he was upset by the job cuts announced recently in the company’s new growth strategy.
“I left Toll the best part of five-and-a-half years ago and had no involvement in the acquisition by Japan Post,’’ said Little. “Since that has happened, a number of my quite close friends at senior management levels have lost their jobs. That has been right in my face. They were loyal and extremely well respected from an industry point of view.
The way they were removed from the company, it has happened so fast and without a lot of compassion. I find that personally quite upsetting.’’
The Australian reported that, under Little’s leadership, Toll’s market value reached a high of $8 billion and it had 50,000 employees. He also introduced an employee share scheme to allow staff to directly participate in the company’s growth.
In 2011, Little stepped down after an ambitious expansion in Asia resulted in write-offs and asset sales, he was then replaced by Brian Kruger who held the position until late 2016.
Little told the newspaper that the “can-do” culture he had known at Toll had morphed into one of “cost cutting and disposal of assets and shrinking the business.”
“Toll’s legacy has been trashed,” Little said. “It has gone from being a strong, proud and aggressive group to one that is being forced to undergo major surgery with retrenchments and a major restructure.
“And I believe that is the result of its culture. The company needs to look closely at changing its culture because the only way it will survive after this restructure is with a strong growth program.
“Toll is not a yield play, Toll is a growth play. Logistics now is a global playground and you need to have global cross-border capability to survive.’’
Little reported that he approached Japan Post, offering to be involved with the company under Japanese management, but his offer was refused.
Through selling his approximately five-per-cent stake in the company following the Japan post takeover, Little benefitted to the tune of $340 million.
“There is not much I can do about the fact that Japan Post overpaid for the company and I had a reasonable shareholding,” he said, adding: “The Japanese need to empower the Australian management if they are going to turn Toll around into a successful corporation.’’