In breaking news, Teck Cominco (TSX: T.TCK.B, Stock Forum) announced Thursday that it will reduce its global workforce by 13%.
The move comes as part of the company’s “broader strategy to reduce costs and bolster competitiveness in the face of persistently weak commodity prices.”
The company says the workforce reduction of about 1,400 employee and 400 contractor positions by the end of 2009 is expected to generate annual savings of around $85 million. While Teck expects to take a charge of $35 million in the first quarter for severance and other related costs.
Teck also said it plans to reduce coal production in 2009 to 20 million tonnes because of declining global steel demand.
"Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs and position Teck for both short and long-term competitiveness," said Don Lindsay, the company’s president and CEO.
Commenting on the news, Stockhouse member Falcon44 posted the following on the company’s Bullboard: “Teck just put out a News release that they will be laying off 1400 employes world wide, also cutting coal production to 20 million tons, I hope this is not the start of further negative news releases to come[sic]…”
Shares of Teck were down 6.9% to $7.07 Thursday morning.
