RIO slashes and burns again

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From The West Australian:

Rio Tinto’s WA workforce is bracing for another big round of layoffs, with the company expected to slash up to 700 local jobs in coming months.

Rio is yet to begin consulting with its 11,500 strong workforce about the cuts, but sources say managers have been preparing staff for another broad-based round of job losses that could see 500 to 700 positions culled from across its mines and Perth headquarters.

…Rio undertook a similar workforce cull last year, in the wake of annual budget cuts, slashing about 800 workers across WA.

Rio has also been putting pressure on suppliers and contractors, and is likely to lock in savings when it signs a long-term contract to manage its Pilbara camps and other facilities with services giant Sodexo.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.