Fortescue will cut about 700 jobs, or 4.5% of its global workforce, in a fresh round of restructuring, the Australian mining company said on Wednesday. At the same time, it has appointed acting chief financial officer Abel Paget to the role of permanent group chief financial officer.
The restructuring underscores the weak outlook for iron ore prices as demand from top consumer China continues to slow due to a struggling property sector, although recent lackluster economic data has raised hopes for more government stimulus.
It is not clear whether the job cuts are specific to Western Australia or a specific division such as iron ore or green energy, but the company said the process would be completed by the end of this month.
The mining company recently merged its metals and energy divisions into One Fortescue, as part of a strategy to “simplify its structure, remove duplication and achieve cost savings”.
Meanwhile, Paget's appointment comes as the world's fourth-largest iron ore miner faces a mass exodus of senior management and billionaire owner Andrew Forrest seeks to transform the company into a green energy powerhouse.
Paget, who has around 25 years’ experience as a finance director, joined Fortescue in January last year.
Fortescue said CEO Shelley Robertson, who has been with the mining company for less than a year, will take over as chief operating officer.
The company will release its June quarter production report on July 25 and full-year results on August 28.
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