Mining giant BHP announces it will cut at least 100 jobs

By @Shayani92 on
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IN PHOTO: A promotional sign adorns a stage at a BHP Billiton function in central Sydney August 20, 2013. Australian shares edged 0.1 percent higher on Wednesday morning, as a mixed bag of earnings kept buyers in check with top miner BHP Billiton Ltd sliding after its profits undershot forecasts, though a rebound in the banking sector helped support the market. BHP dropped 2.5 percent after it missed analysts' forecast in its full-year profit late on Tuesday and said it delayed production the $14 billion Canadian potash project. Picture taken August 20, 2013. REUTERS/David Gray

Global mining giant BHP Billiton has plans to cut at least 100 jobs at its Melbourne head office upon completing the South32 demerger in May next year. The decision has been taken to streamline corporate operations and lower expenses to cope with the drop in mining prices.

A BHP Billiton spokesperson said the employee figures will move down from 400 to 300 in coming years and confirmed that the company also has plans to move its treasury division to London. "This number is a planning basis," he said. He also assured that it fully complies with its foreign investment review board (FIRB) commitments.

According to Skynews, the company will have extensive consultation with its employees based at its Collins Street, Melbourne headquarters. Meanwhile, Australian Financial Review reports revealed that before the jobs cuts announcement was made, staffing peaked at 480 positions.  

The mining company has reported that the prices of its main commodities plummeted in fiscal 2015, which analysts predict will result in a loss of about 40 percent for the year. Sky News Australia had earlier reported that BHP planned to cut 37 percent of its headquarters staff.

In 2014, the company sold iron ore at $141.01 per tonne while prices fell to $83.51 a tonne in 2015. BHP, however, is not alone in announcing job cuts in the resource sector. Anglo American (AAL.L) also plans to shed more than 2000 jobs by the end of next year and Encana Corp, has already sacked 200 of its employees.

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