BHP will cut iron ore jobs

BHP has announced it will cut jobs across its iron ore operations.

Speculation has been rife since early August that the miner would slash jobs.

At the time a BHP spokesperson told Australian Mining there was only "speculation" and little basis to rumours of Pilbara job cuts and delays at Port Hedland.

"All we would say is that against a backdrop of increasing costs and falling commodity prices, we continue to focus on reducing our overheads, operating costs and non-essential expenditures to ensure our assets are well positioned on their relative cost curves," they said.

"This includes reviewing our overhead costs and the sequencing of our major project."

However it has now confirmed that it will be paring back its workforce.

While it has not confirmed the number of workers to be cut, it did state that the workers are being made redundant due to the falling iron ore price and lower demand, the ABC reports.

"BHP Billiton has completed a review of its current organisational structure to ensure it is aligned to the BHP Billiton design principles and correctly sized for the market conditions in which we operate,'' a company spokesman told the SMH.

It is believed that around 200 positions will be cut from the current BHP workforce.

Contractors working at BHP's Port Hedland and Pilbara operations have already been forced to cut back staff numbers.

Last month the joint venture between Sinclair Knight Merz and Fluor (FAST) slashed its workforce by a third in the wake of BHP halting its iron ore expansions.

It cut 500 positions from its 1400 strong workforce.
 

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