We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Rio Tinto announces £3.2bn in cost cuts

Cost slashing exercise to be spread over two years

Article comments

Global mining giant Rio Tinto has announced US$5 billion (£3.2 billion) in cost cuts.

The cuts, which would be spread over two years, were announced on Thursday in wake of what the mining company described as stunted global demand and a dip in commodity prices.

In a statement Tom Albanese, chief executive of Rio Tinto, said, “We are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity.”

Primary fear of most mining majors appears to be an economic slowdown in China as the macroeconomic picture the USA and Europe remains precarious. Other mining companies such as Anglo American and BHP Billiton have also announced cost cutting measures.

However, Albanese said Rio Tinto does expect growth in the Chinese over the coming months.

"I'm cautiously optimistic about the fact that we're beginning to see green shoots in China," he said.



Rio Tinto announces £3.2bn in cost cuts
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Card Factory planning London listing

Share float could see company valued close to £1 billionmore ..

Unilever reports Q1 sales growth of 3.6%

However, consumer product giant’s turnover hit by 8.9% negative currency impactmore ..

Spirent posts 16% rise in Q1 revenue

Networks testing firm benefiting from 4G rollout in Chinamore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..


* *