The company's radical restructuring, which targets US$3.7 billion in cost cuts, is forced by low commodity prices
LONDON—Shares in the mining firm Anglo American plunged by more than eight per cent after it said it would shed around 85,000 employees—or 63 per cent of its workforce—amid a radical restructuring program meant to cope with the tumble in commodities prices.
CEO Mark Cutifani says in Dec. 8 statement that commodity price deterioration requires “bolder action,” than described previously. The share price fell to 338.80 pence as markets digested the news.
The company will suspend dividend payments and reduce its assets by 60 per cent. It will also consolidate from six to three businesses. Some $3.7 billion of cost and productivity improvements are underway and set to be completed by 2017.
Cutifani also confirmed Anglo will sell the phosphates and niobium businesses during 2016.