South32 has announced a major restructure of its Western Australian operations, resulting in the loss of 100 jobs. The company, which demerged from BHP Billiton in 2015, is implementing cost-cutting measures across its global portfolio.
The job cuts are part of a broader strategy to reduce costs and improve efficiency amid challenging commodity prices. South32 has flagged a substantial reduction in employee numbers during the remainder of the 2016 financial year, with details to be disclosed at the half-year results in February.
In addition to the WA cuts, the company has already confirmed 620 job losses at its Samancor manganese joint venture in South Africa, where production has been reduced. Restructuring and redundancy costs for the South African operations are estimated at US$10 million.
South32 also revealed US$1.7 billion ($2.4 billion) in asset write-downs, primarily related to its manganese and coal operations. The company's CEO, Graham Kerr, stated that the strategy focuses on maximizing value rather than volume, positioning the company for any improvement in industry fundamentals.
Investors reacted positively to the announcement, with South32 shares rising 16.3% on the day.
