Challenging market conditions have forced job cuts at Hastings Deering.

Australian heavy equipment supplier Hastings Deering, part of Malaysian multinational Sime Darby, will cut about 400 jobs this month due to challenging market conditions.

The announcement follows efficiency and productivity measures put in place in the past 12 months.

The Sydney Morning Herald reports Hastings Deering retrenched about 200 workers in June last year.

The company is one of the world's largest Caterpillar dealer networks with more than 23 branches, 26 sub-branches and nearly 5,000 employees. It has distribution rights for Caterpillar heavy equipment sales and rentals, and parts and service support in Queensland, the Northern Territory, Papua New Guinea, New Caledonia and the Solomon Islands.