Thousands of jobs could go at BHP’s iron ore operations in Western Australia after an external consultancy handed in a review of proposed cost-cutting measures.
According to the ABC, “up to 3,000 jobs could go from BHP’s iron ore division, which currently employs 16,000 people.” This figure equates to approximately 20% of the workforce.
Contractors are believed to be the first to go with contracts not being renewed by the company when they reach expiry.
500 jobs have already been slashed by BHP since the beginning of the year including 100 at the head office in Perth.
BHP told the ABC that their employees were aware of the review and that the company was open and honest in their internal communication.
In a statement the company said the cuts were necessary to keep the company viable in the current downturn in the commodities market.
“BHP Billiton Iron Ore regularly undertakes improvement initiatives and organisational reviews. We have engaged external consultants to assist with this process.
This is about continuing to safely improve our business and ensuring we are a competitive, world-class operation.
The cost-cutting review became necessary after iron ore prices fell more than 30 per cent since the beginning of the year to around $90 a tonne.
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