SOUTH JORDAN, Utah (ABC 4 News) – Rio Tinto has announced that it is reducing its headcount in Utah by 241 people. The reduction in force includes 66 current employees and 175 contractors.
These reductions have begun for contractors and will begin for employees next week. Reductions are coming from within Kennecott Utah Copper, Kennecott Land, Kennecott Exploration and Rio Tinto service functions. Currently, there are approximately 2,400 employees working for Rio Tinto in Utah. Those affected Rio Tinto employees will be offered severance packages and outplacement assistance.
Today, Rio Tinto delivered a letter to elected officials to notify them of the planned employee reduction as required by the Work Adjustment and Retraining Notification Act.
In December, Rio Tinto announced a detailed package of measures in response to the unprecedented rapidity and severity of the global economic downturn, which has caused sharp falls in commodity prices and a significantly weaker outlook. One of the announced initiatives is the reduction of 14,000 roles (8,500 contractors and 5,500 employees) throughout the global business. The initiatives are aimed at preserving value for shareholders by conserving cash flow and reducing levels of debt.
“We know these decisions have personal consequences to those involved and those who remain,” said Andrew Harding, President and CEO, Kennecott Utah Copper. “Rio Tinto must respond, like so many other companies, to this global economic crisis which may continue to deteriorate.”
----Information from: Rio Tinto
