In the face of a commodities rout, AngloAmerican's revenues (-$3bn or -36% EBIT) are not the only thing being slashed, as the miner expects to cut 6,000 jobs in a restructuring effort. Anglo, which employs more than 150,000 people, said 4,000 jobs that are not operational — “people who do not touch product”, as chief executive Mark Cutifani put it — would be cut. A further 2,000 such jobs are set to disappear as part of the asset sales programme. In the longer term, Anglo, which employs 151,000 staff worldwide, aims to reduce its workforce by about a third - with various sources citing the figure at 53,000. However, Cutifani said, “We will not sell high quality assets or assets we consider to be core to the business to cover the dividend . . . We would not look at cutting into the core of the business”, which includes diamonds.
On the bright side, Anglo American shares actually rose 2.5% on Friday after the miner maintained its interim dividend of 32 cents per share while announcing better-than-expected first-half results.