The Caterpillar heavy-machinery dealer will implement the changes across its eastern states operations “in the next month at an approximate cost of $10 million.”

Seven Group said today that a series of efforts to improve efficiency and productivity over the past eight months to streamline its cost base had "not been sufficient in view of continuing challenging market conditions".

The cuts will not affect WesTrac’s Western Australian operations and will leave the company with 3500 employees nationally.

“Customers can expect business as usual from WesTrac during this time,” it said.

Seven Group also announced it expected underlying net profit after tax for the year ending June 30 to come in at the low end of its previous forecast range, at about $376 million.

The news comes at the end of a horror week for the mining industry, with more than 1000 jobs axed from the sector.

The coal sector has been hit particularly badly, with majors Peabody and Glencore Xstrata making massive cutbacks at NSW and Queensland mines during the week.

Plunging thermal and coking coal prices, the high Australian dollar and high wages have been blamed for the job losses.