Anglo American to cut a further 9,000 jobs

Anglo American has announced it is to shed a further 9,000 jobs – on top of the 10,000 job losses at its platinum unit announced last week.

The mining giant has been hit by a slump in demand for raw materials and, as a result, is to slash its capital expenditure by half.

The company also said it will not pay a full-year dividend for 2008.

Earlier this month, the problems in the mining sector led Rio Tinto to slash 14,000 jobs worldwide. Rio and fellow mining company, Xstrata, are both looking to capital fundraising as prices for metals plummet.

Cynthia Carroll, chief executive, said that the severity of the global economic downturn and its impact on growth rates in key sectors and economies are difficult to overstate.

From global automotive production to construction activity in emerging markets, there was a marked contrast between the first and second halves of 2008, when commodity prices fell sharply“, added Ms Carroll.

She cautioned that the global economy “faces an unprecedented level of uncertainty and the outlook remains poor.”

Following the news of the job losses, shares in the company plunged 8%. In the last 12 months alone, the stock has lost over 60% in value.

Story link: Anglo American to cut a further 9,000 jobs