NEW YORK, Jan 16 (Reuters) - Rio Tinto Ltd/Plc said Friday it cut 241 jobs at its Utah operations as part of a global plan to reduce costs as it struggles with the global economic downturn.
The mining giant said in a press release that the reduction includes 66 current employees and 175 contractors from Kennecott Utah Copper, Kennecott Land, Kennecott Exploration and Rio Tinto service functions.
There are currently 2,400 employees working for Rio Tinto in Utah, it said.
Rio Tinto said it will offer affected employees severance packages and outplacement assistance.
'We know these decisions have personal consequences to those involved and those who remain,' said Andrew Harding, President and CEO, Kennecott Utah Copper.
'Rio Tinto must respond, like so many other companies, to this global economic crisis which may continue to deteriorate,' the executive added in the company statement.
In December, Australian-based Rio Tinto announced a package of measures in response to the rapid and steep global economic downturn. Weakness spilling into the mining sector has caused sharp declines in all metals prices, numerous production cuts, with a weak outlook.
On Thursday, Rio Tinto, the world's fourth-biggest diversified miner by market value, reported an 18 percent drop in fourth-quarter iron ore output. Sales from its key west Australian iron ore mines fell 23 percent as demand from Chinese steel mills slumped.
The mining group named a new chairman on Wednesday. It said Jim Leng, deputy chairman of India's Tata Steel would take over in April.
One of the initiatives Rio Tinto announced in December was a global workforce reduction of 14,000 jobs, broken down as 8,500 contractors and 5,500 employees. It said the measures were aimed at preserving value for shareholders by conserving cash flow and reducing debt levels.
(Reporting by Carole Vaporean; Editing by David Gregorio) Keywords: RIOTINTO LAYOFFS (carole.vaporean@reuters.com; 1-646-223-6044; Reuters Messaging: carole.vaporean.reuters.com@reuters.net; nyc.commods.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The mining giant said in a press release that the reduction includes 66 current employees and 175 contractors from Kennecott Utah Copper, Kennecott Land, Kennecott Exploration and Rio Tinto service functions.
There are currently 2,400 employees working for Rio Tinto in Utah, it said.
Rio Tinto said it will offer affected employees severance packages and outplacement assistance.
'We know these decisions have personal consequences to those involved and those who remain,' said Andrew Harding, President and CEO, Kennecott Utah Copper.
'Rio Tinto must respond, like so many other companies, to this global economic crisis which may continue to deteriorate,' the executive added in the company statement.
In December, Australian-based Rio Tinto announced a package of measures in response to the rapid and steep global economic downturn. Weakness spilling into the mining sector has caused sharp declines in all metals prices, numerous production cuts, with a weak outlook.
On Thursday, Rio Tinto, the world's fourth-biggest diversified miner by market value, reported an 18 percent drop in fourth-quarter iron ore output. Sales from its key west Australian iron ore mines fell 23 percent as demand from Chinese steel mills slumped.
The mining group named a new chairman on Wednesday. It said Jim Leng, deputy chairman of India's Tata Steel would take over in April.
One of the initiatives Rio Tinto announced in December was a global workforce reduction of 14,000 jobs, broken down as 8,500 contractors and 5,500 employees. It said the measures were aimed at preserving value for shareholders by conserving cash flow and reducing debt levels.
(Reporting by Carole Vaporean; Editing by David Gregorio) Keywords: RIOTINTO LAYOFFS (carole.vaporean@reuters.com; 1-646-223-6044; Reuters Messaging: carole.vaporean.reuters.com@reuters.net; nyc.commods.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.