More fall out from the collapse in commodity prices ... Anglo American is to shrink in size, slash jobs and suspend dividend payouts
- To shed 60% of its assets
- Reduce the number of its facilities from 50 to the "low 20s"
- Workforce to drop to around 50,000 from its current around 135,000
- Details of job cuts to be announced in February
- Anglo American had previously announced job cuts down to 92,000 employees ... so this is further cuts now
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- Will suspend dividends through to the end of the 2016
- Will cut an extra $1bn from capital expenditure this year
- Targeting $4bn in disposals, with $2bn in sales already booked in
- Will take an impairment charge of up to $4.7bn due to "weaker prices and asset closures"
- Costs cutting to deliver $1.6bn in savings this year, $1.1bn in 2016 and $1bn in 2017
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Its (part of) our job as traders to gather information such as this and deal with it. Its sometimes difficult, though, not to reflect on the costs to the people immediately impacted by job losses. Not just at this firm, but at the others we all hear about all the time across all sorts of industries.
New industries and opportunities will open up, sure ... but the transition costs to individuals can be substantial.
