Amplats to cut jobs cuts after profit plunge

Anglo American Platinum said on Monday it plans to cut thousands of jobs at its mines in South Africa after its profits plunged by 71 percent last year.

The business announced in a statement that, in the face of declining pricing for platinum-group metals, it was undergoing a reorganization that may impact roughly 3,700 jobs at its South African facilities.According to Amplats, the miner is also examining agreements with 620 service providers.The CEO, Craig Miller, stated that the reorganization decision "has not been taken lightly." "We acknowledge the unemployment issues in South Africa and the potential socio-economic consequences of the proposed restructuring for our people and the communities we live in, so it's very much a last resort," Miller stated during a conference call.

The Johannesburg-based company reported that, in contrast to 48,8 billion rand the year before, its earnings for the year ending December 31, 2023, dropped to 14 billion rand (US$741,81 million). Amplats reduced its dividend to 21,30 rand per share, an 81 percent cut. Nevertheless, according to Amplats, the distribution falls within its 40 percent headline earnings ratio. correspondingly, in the year. Sibanye Stillwater, one of Amplats' South African colleagues, has also declared intentions to reduce staff as a result of the decline in metal prices.CEO of Anglo American Duncan Wanblad told Reuters on February 5 that if market circumstances did not improve, the company was thinking about taking more drastic cost-cutting measures.- CNBC Africa

Anglo American planned massive layoffs in December with the goal of saving roughly US$1,8 billion by 2026. Amplats announced that it is delaying planned projects at its Amandelbult complex in order to reduce costs.