Elders will implement a frugal program of job cuts and cost reductions after announcing it expects to make a loss this year.

The agribusiness, which sold its profitable insurance wing to QBE last year in an effort to pay off its debt, announced to the sharemarket last week that it expects a loss of $8-14 million.

In previous guidance Elders said it was expecting a full-year profit to September 30 of $55.7 million.

QBE purchased Elders Insurance, taking up a majority stake in its insurance agency business, for $315 million in July last year.

The deal gave QBE an additional $400 million in forecast gross written premium as well as a significant stake in Australia’s largest rural services network.

Part of the deal included QBE taking $45 million worth of Elders shares at 40c each, later purchasing another $55 million at 15 cents per share. The company is now the second-largest holder of Elders’ shares at 8.27%, behind IOOF.