Anglo America Uses Shared Services to Button Down 2 Billion Savings
Mining giant Anglo American has said it would axe a further 9,000 jobs in 2009, in addition to the 10,000 previously unveiled at AngloPlatinum in South Africa, to bring it in line with lower production and growth plans. But Anglo American declined to comment on where the 9,000 job cuts would fall.
The group’s pre-tax profit fell by 2.8 per cent to $8.6bn for the year ended 31 December. Anglo American warned of a sharp fall in demand in the second half from the accelerating global industrial downturn.
The group is looking to deliver $2bn in cost savings by 2011, and expects $1bn from its asset optimisation programme and the remainder from its procurement and shared services initiatives.
Cynthia Carroll, the chief executive of Anglo American, said: “From global automotive production to construction activity in emerging markets, there was a marked contrast between the first and second halves of 2008, when commodity prices fell sharply. As we begin 2009, the economic outlook remains weak, with limited visibility, and we are continuing to experience volatility and downward pressure on commodity prices.”
Operating profit at Anglo American’s UK industrial minerals’ business, Tarmac, tumbled by 52 per cent to $228m, as demand for materials, such as sand and gravel, suffered from the slump in the UK housing market. But its ferrous metals and coal operations generated stronger performances, boosted by record production of coal and iron ore.
