Peabody Energy has announced plans to cut approximately 250 corporate and regional positions – 25% of corporate and regional support positions ¬– in the near future to lower costs. Several reductions are anticipated to occur 2Q15. The company projects saving of US$40 million – US$45 million annually.
The company will be implementing other measures to help cut costs and condense the organization, including delayering of the organisation and closing offices in Evansville, Indiana, and Gillette, Wyoming.
The company will also commence a review of shifts, scheduling and mine planning at operations in Australia to establish optimal production levels.President and Chief Executive Officer, Glenn Kellow commented: "While we regret the impact that these actions have on employees, their families and communities, today's announcement represents another necessary step to drive the company lower on the cost curve. To remain most competitive in the current environment, Peabody is implementing a number of initiatives in the operational, SG&A, financial and portfolio management areas of our business."
Edited from Press Release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/09062015/condensing-to-fit-a-leaner-corporate-structure-2392/