Griffin Coal has quashed rumours that it will cut back up to a third of its white collar workforce.
The site has been crippled by rumours that around 30% of its office staff would be laid off, according to the Collie Mail.
Chris Godfrey rejected the gossip going around the company; however he did state that it was undergoing a structural review.
"We are not laying anyone off at this stage," he said.
"[The cut back] is a total rumour.
"We are obviously looking at maximising efficiencies. It is a standard procedure to ensure we are getting the most out of our people."
However this was dismissed by the AMWU, which stated that Griffin is telling "porky pies".
AMWU state secretary Steve McCartney explained that "they told our convener that there would be a 30 per cent cut to staff, to white collar workers, but that blue collar workers have nothing to worry about".
It is sending in representatives to see if it is changing its direction.
The rumours come in the same week as BHP cut 100 workers at its Olympic Dam operations, and announced that it is mulling a sell off of its Gregory Crinum operations.