Australian-based mining titan Fortescue Limited (FMG.AX) announced on Wednesday, 17 July 2024, that it plans to merge its mining and energy segments, resulting in up to 700 job losses.
Fortescue’s Restructuring Leads To 700 Job Cuts
Andrew Forrest, the company’s founder and executive chairman of the board, reportedly addressed 16,000 employees about the possible layoffs. Positions on the chopping block allegedly include senior management.
This move comes after the company shifted its focus to the production of affordable renewable energy. Analysts believe this strategic U-turn will, however, negatively impact the company’s aim to produce 15 million tonnes of clean hydrogen by 2023. In an Australian Stock Exchange (ASX) statement, Fortescue noted that the restructuring is part of initiatives that will “simplify its structure, remove duplication and deliver cost efficiencies”.
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The company also maintains it is crucial to “continually evolve” to “generate the maximum value for its shareholders”. It stated:
As part of this, approximately 700 people from across Fortescue’s global operations will be offered redundancies, with that process to be finalised by the end of July 2024.
Forrest said Fortescue was committed to its 2023 net zero goals and that “without change, improvement is not possible. He added:
Being a first mover isn’t easy, but as we learnt 21 years ago, risk is always worth the reward.
Ironically, the firm also used this statement to confirm the appointment of Apple Paget as its chief financial officer. Shelley Robertson, who fulfilled the role of chief corporate officer, will now act as the company’s chief operating officer.
