25 July 2015
The global mining company Anglo American will cut about 6,000 jobs over the next 1-2 years as it is facing a decline in the metal prices, which this week led the share price to the lowest level in the last 13 years.
The company announced a significant reduction in first half earnings due to lower metal prices, said today it will cut about 6,000 of the nearly 13,000 administrative and other jobs not related to the production sector, 2,000 of which will be cut by the selling of units.
Sources familiar with the matter earlier this month stated at Reuters that the company, which has approximately 151,000 employees worldwide, planned major cuts.
The company, located in the middle of a recovery effort that began in 2013 by CEO Mark Katifani, has suffered more than its competitors due to falling metal prices, mainly due to higher costs for iron ore activities and Unit platinum It has been affected by rising costs and lower prices.
The share price of the fifth largest mining group in the world based on market capitalization has fallen this year by about one third as investors worried about the slow pace of restructuring, which Katifani applies and focuses on improving the productivity of mining and selling non-core activities.
In today’s letter to employees, which had access to Reuters, the company said that by the end of the year will cut 1,000 jobs, some 1,500 by the end of 2016 and even 3000 then.