BHP Group Ltd., the world's largest mining company, has embarked on a major restructuring of its global operations, covering divisions ranging from mine planning to decarbonization and heritage preservation, according to the Australian Financial Review.
AFR reports that under CEO Mike Henry, the company will disband several specialist teams and reallocate functions to cut costs and streamline operations. The AFR did not disclose the source of the information. Various commodity divisions will take on more responsibility for self-sufficiency, the company said, adding that BHP had already started cutting jobs in Australia.
"As part of our continuous improvement of the way we work, we have made a number of changes to better align work activities with assets and support faster decision making," BHP said in an emailed response to questions from Bloomberg News. The company did not comment on the layoffs.
BHP Billiton, a major producer of everything from iron ore to copper and coking coal, suffered a sharp drop in first-half profit. While that was largely due to a $2.5 billion writedown in its nickel business, most of the big miners were hit by higher costs and weaker commodity prices.
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In its most recent earnings report, BHP said mining costs were higher than before the coronavirus outbreak and warned that while price pressures on energy and logistics had eased, Labour costs remained a key risk.
In Australia, BHP President Geraldine Slattery sent a message to employees outlining changes to the company's health, safety, environment and mine planning functions.
The AFR report did not mention how many employees might be affected by the restructuring.
