Anglo American Platinum (Amplats) is planning to cut 3,700 jobs in South Africa due to a significant drop in platinum metal prices, resulting in a substantial decline in profits last year.
The job cuts represent about one-fifth of the company’s total workforce, with an additional 620 contractors’ roles also under review.
The decline in profits was attributed to macroeconomic uncertainty and a 35% fall in the price of platinum group metals, driven by the decrease in the value of palladium and rhodium, essential materials used in catalytic converters for petrol and diesel cars.
Amplats’ struggles will pose a challenge for Anglo American, one of the largest companies on London’s FTSE 100, which has experienced a significant decrease in value in recent months.
The company’s chief executive, Craig Miller, emphasized that the decision to cut jobs was a last resort and acknowledged the socioeconomic impact it would have on workers, their families, and local communities.
Amplats will engage in a consultation period with trade unions and non-unionized staff before finalizing the number of job cuts. The company operates across northern South Africa.
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Miller stated that these actions are necessary to sustain the employment of thousands of workers and contractors, who contribute value through salaries, taxes, and royalties, as well as the procurement of goods and services from local suppliers.
2024-02-19 09:19:02
Source from www.theguardian.com