Rio Tinto mum on possible Australia lay-offs

PERTH (miningweekly.com) – Mining major Rio Tinto on Wednesday refused to be drawn to comment on reports that the company planned to cut between 500 and 700 staff across its Australian operations and offices in the next few months.

Reports have suggested that Rio was yet to start the consultation process with its workforce, which currently consisted of some 11 500 employees.

Despite remaining mute on the possible lay-offs, the company has confirmed that cost cutting was a main focus.

“We are continuing to transform our business to ensure we remain globally competitive. Market conditions remain tough and we continue to focus on reducing costs and improving productivity,” a spokesperson for the company told Mining Weekly Online on Wednesday.

CEO Sam Walsh in February announced that the company was undertaking a new round of proactive measures to cut operating costs by $1-billion in 2016, and a further $1-billion in 2017. This was in addition to the $750-million cost savings achieved in 2015, and the $2.3-billion in 2014.

Capital expenditure in 2016 would also be cut to $4-billion, and would reach $5-billion in 2017, an overall reduction of $3-billion compared with the previous guidance.