Australian iron ore company Fortescue Metals Group has started cutting workers to maintain cost position, reported Reuters citing a person familiar with the development.
Nearing completion of its Iron Bridge magnetite project in Western Australia, the company could axe more than 100 workers, according to local media. This is notably lower than last month’s projection by Reuters, which said that the miner is planning to cut its workforce by 1,000.
In an email response to the news agency, the firm said: “Projects such as Iron Bridge are coming into production phase soon while our work in Gabon is just kicking off. As this occurs, project staffing naturally ebbs and flows.”
Sydney Morning Herald quoted a Fortescue spokesman as saying that the redundancies form part of the ‘business as usual for rapidly evolving global companies. The spokesman said: “We are always looking for opportunities for continuous business improvement to maintain our industry-leading cost position.”