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Anglo American to slash workforce amid commodities slump

Published 08/12/2015, 14:16
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Investing.com - Anglo American (L:AAL) unveiled plans for a sweeping restructuring of its business in the face of severe commodity price falls, the mining company said on Tuesday.

The overhaul of its business highlights the scale of the commodity slump's impact on the mining sector.

Anglo said it would cut its assets by 60% and reduce its workforce to 50,000 from 135,000, the deepest job cuts announced in the sector since the crisis began.

Anglo has suffered more than its mining peers from the commodity slump, largely due to higher-cost iron ore operations than its larger competitors BHP Billiton (L:BLT) and Rio Tinto (L:RIO).

The group's share price tumbled 9.5% in premarket trade after Anglo also suspended dividends for the remainder of 2015 and in 2016.

The shares have plunged 70% this year hit by investor concerns over the slow pace of turnaround efforts.

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