Anglo American has announced they will cut 35 per cent of their staff in their 2015 interim results report this week.
The global coal giant said it lost $3 billion during the first half of 2015 and that it would cut 53,000 jobs in the coming years, as a deep rout in commodity prices continue to add strain to the industry.
Chief Executive Mark Cutifani said the company is targeting a $500 million of cost saving, including $300 million through the reduction of 6000 overhead and other indirect roles, a 46 per cent decrease, including those that will transfer with the businesses we are divesting.
“Post asset sales, we expect to have reduced our number of assets from 55 to 40 and reduced total employees by 35 per cent, while maintaining copper equivalent production,” Mr Cutifani said.
“As a result, and following the asset disposals and further business improvement, our underlying EBITDA margin of 25 per cent in the first half of 2015 would increase to 35 per cent on a like for like basis, representing a 40 per cent improvement off a substantially lower cost base.”
Mr Cutifani said the company is making “fundamental changes to transform Anglo American – operationally, structurally and culturally – into a fit for purpose organisation with an enhanced resource endowment”.
“Combined with our diversified strategy across the early, mid and late cycle demand segments, we are ensuring that the business is sustainable through the commodity price cycles, as well as shorter-term price shocks, and offers investors attractive and differentiated exposure to the mining industry,” he said.
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