Anglo American Platinum plans job cuts amid profit squeeze

Johannesburg-based Amplats says one in 5 jobs may be lost in South Africa amid plunge in profits.

Anglo American Platinum

The platinum arm of Anglo American is to cut 3,seven hundred jobs in South Africa because the British mining employer tries to enhance overall performance within the division.

Anglo American Platinum (Amplats) said on Monday it aimed to reduce jobs after a sharp drop in platinum metallic costs, which had led to a crumble in profits ultimate 12 months.

The jobs below hazard account for about one-fifth of the Johannesburg-based corporation’s general staff, with Amplats additionally reviewing the roles of a further 620 contractors.

Profits at Amplats, in which Anglo American holds a 79% stake, fell to R14bn (£586m) in 2023, down by means of 71% from R48.8bn in 2022.

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The commercial enterprise attributed the autumn to “macroeconomic uncertainty”, in addition to a 35% fall in charge of platinum institution metals.

The fall become driven through the drop in price of palladium and rhodium, essential materials used in the catalytic converters for petrol and diesel automobiles. Demand has taken successful as greater carmakers ramp up production of electric automobiles.

Amplats’ struggles will come as another headache for Anglo American, considered one of the largest agencies on London’s FTSE 100, which has misplaced billions of pounds off its price in recent months. Analysts cautioned in December that the mining enterprise had emerge as a takeover goal after its stocked dropped via 45% across 2023.

Craig Miller, the chief government of Amplats, stated the business enterprise had implemented numerous fee-cutting tasks to cope with the global and neighborhood demanding situations but the “protracted low-fee initiative” supposed similarly measures were wished.

Anglo American, which is likewise the main shareholder in De Beers, the world’s biggest diamond miner, is scheduled to report its annual outcomes on Thursday. Investors can be keen to peer any symptoms of a turnaround.

Amplats will begin a session period with exchange unions and non-unionised workforce, with the very last quantity of task cuts coming after this era. The employer has operations throughout northern South Africa.

Miller said the decision had been taken as a “final inn” for the business enterprise and it mentioned that the activity cuts would have a “socioeconomic effect” on people, their families and nearby groups.

He said: “These actions are necessary to preserve the rent of thousands of employees and contractors who will retain to feature price for our stakeholders – via salaries, taxes and royalties, as well as procurement of goods and services from neighborhood suppliers.”

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