Anglo American Cutting 85,000 Jobs

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CBJ — Anglo American is firing 85,000 staff workers and will sell more assets and suspend dividends until the end of next year as the mining company struggles to survive in a prolonged economic downturn for the resources industry.

It means the international workforce will be dropped from 135,000 down to 50,000 in one fell swoop.  The company will run with three main divisions: De Beers for diamonds, Industrial Metals for platinum and base metals and Bulk Commodities for coal and iron ore.

The London-listed company aims to raise $4-billion through assets sales.

It not yet known how this massive restructuring will ultimately impact on various Canadian subsidiaries. Anglo-American’s De Beers diamond mining unit has operations in Canada, including the Snap Lake mine in the Northwest Territories, which De Beers said last week it plans to close because of falling prices and high operating costs.

De Beers also owns the Victor diamond mine in Ontario and is building the Gahcho Kue mine in the Northwest Territories.

@CanBizJournal

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