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Falling commodities prices cost 6,000 people their jobs at Anglo-American

Jul 24, 2015, 13:04 IST

REUTERS/Dado Ruvic

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Mining company Anglo-American will cut 6,000 jobs as part of a company-wide effort to save money.

It's a reaction to tanking commodity prices.

CEO Mark Cutifani said: "We are unrelenting in enforcing strict cost and capital discipline across Anglo American, building upon the unit cost reductions delivered to date."

Cutifani said the job cuts will come from "overhead and other indirect roles," saving the company $300 million.

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The company reported half-year profit before tax of $1.9 billion - a 36% fall - on revenues of $13.4 billion. It blamed falling iron ore prices, which wiped $2.9 billion off the value of its Minas Rio mine in Brazil.

Iron ore collapsesThe Steel Index

Despite this, Anglo-America said will maintain its shareholder dividend of $0.32.

Cutifani said: "We are ensuring that the business is sustainable through the commodity price cycles, as well as shorter-term price shocks, and offers investors attractive and differentiated exposure to the mining industry."

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