FTSE 100 Company To Cut Over Half Its Workforce

Anglo American has vowed to accelerate a programme which will result in thousands of job losses.

Having initially climbed over 6% following the announcement, its shares have since fallen and were 6.4% lower at noon.

Anglo hope to raise up to £4bn from the disposal of assets this year following news that Moody’s, the rating agency, has downgraded its debt to junk status as the firm struggles to weather the commodity rout which has seen prices fall to their lowest levels since 1999.

The targets were announced as Anglo’s performance deteriorated to a £3.8bn pre-tax loss for 2015 (compared to a £179m loss a year earlier) as revenue fell by more than a quarter to just under £16bn.

The disposals will result in 5,500 job losses globally – reducing its head count by nearly 60%.

Anglo said it has started a review to “consider options to exit from its Kumba Iron Ore holding at the appropriate time, including a potential spin-out”.

Anglo owns nearly two thirds of Kumba Iron Ore – the fourth largest iron-ore producer in the world and the largest in Africa.

The London-based firm is expected to refocus on three areas; copper and platinum and diamonds which is mines and sells via its world-renowned De Beers brand.

Commenting on the new strategy Anglo’s boss Mark Cutifani said: “We will focus our portfolio on our global leadership positions in diamonds and platinum group metals and our world-class position in copper.

“This unique combination of assets, enhanced by our commercial marketing expertise, will have the advantage of benefitting from the ongoing shift away from infrastructure investment towards consumer-driven demand.”

Shares in Anglo American have risen by more than a quarter so far this year, but have fallen by nearly 70% over the past 12 months.

 [Source:- sky]