The British mining group Anglo American announced on Friday that it intends to eliminate 19,000 jobs by the end of this year, following a report of a 29% drop in net profit in 2008, to $5.2 billion.
The layoffs are part of a cost-saving plan that is expected to save the group $2 billion annually by 2011. In the statement, the group reiterated its earlier announcement from December about halving its investments in 2009 to $4.5 billion, in response to the sharp decline in metal prices due to the global economic slowdown. The company also announced that it would not pay a final dividend for 2008 in order to preserve cash. This announcement pressured its shares, which fell by 11.4% on the London Stock Exchange by noon. Anglo American is a diversified company that produces platinum, coal, and base metals such as copper, zinc, and nickel. It also holds a 45% stake in the South African company De Beers, the world’s largest diamond producer. (H)
