- Layoffs are response to downturn in commodity prices
- Staff reductions to occur in coal, ferro-alloy operations
Exxaro Resources Ltd. may cut as many as 565 jobs from coal to ferro-alloy operations, citing low commodity prices and a drop in equity investment, according to documents seen by Bloomberg.
The company has given notice of the Section 189A process, which is required by South African labor law before positions can be eliminated, the documents showed. Exxaro has implemented cost-cutting measures in response to the downturn and said when reporting earnings last month that it anticipated a “challenging” year ahead.
The jobs are likely to be cut at Exxaro Resources Ltd., Exxaro Coal Ltd., Exxaro Coal Mpumalanga Ltd. and Exxaro FerroAlloys, according to the documents. Mzila Mthenjane, a company spokesman, declined to comment.
Exxaro said in March it will save labor costs of 250 million rand ($17 million) a year after 464 employees took voluntary severance packages at a cost of 408 million rand in 2015.