Mining giant
Anglo American Plc (
OTO: AAUKF,
Stock Forum) is cutting 53,000 jobs in the next few years after reporting a loss of $3 billion during the first half of 2015, the company said Friday.
“The first six months of 2015 saw considerable further price decreases for our products amidst a volatile market environment and economic uncertainty in certain key markets,’’ said Anglo American Chief Executive Mark Cutifani.
The company said it expects to generate proceeds of at least $3 billion from asset sales, including the $1.6 billion received from the sale of its 50% interest in Lafarge Tarmac.
It went on to say that it is targeting $500 million in cost savings, of which $300 million will be realised from its ongoing core business through the reduction of 6,000 over head and other indirect roles, a 46% decrease, including those that will transfer with the businesses being divested.
Post asset sales, we expect to have reduced our number of assets from 55 to 40 and reduced total employees by 35%, while maintaining copper equivalent production.