WELLINGTON, New Zealand--Fletcher Building Ltd. said it plans to reduce its workforce in New Zealand and Australia by 1,500 people as the pandemic induces a sharp economic downturn in the coming year and beyond.

The job cuts are equal to about 10% of the construction company's workforce, it said Wednesday. The majority of the reductions--about 1,000 jobs--will be in New Zealand.

Fletcher Building said lockdowns to control the spread of the coronavirus resulted in it recording an operating loss of about 55 million New Zealand dollars ($33.3 million) in April. Core businesses are expected to be profitable in May and June, the company said.

It expects residential building consents to fall about 30% in New Zealand in the year to June 2021 and the value of commercial construction work to decrease about 15%. Infrastructure work put in place would drop by 10%.

For Australia, the company expects residential building consents to drop 15% and commercial and infrastructure works to fall by similar percentages to New Zealand.