Rio axes costs

Rio has announced plans to cut support and services expenses globally.

Tom Albanese has announced that the company will cut costs by around 10%, according to the AFR.

These cutbacks will be focused on administrative and office roles rather than on the mines themselves.

However this announcement comes only weeks after Rio Tinto unveiled its plans to begin construction of its new office block in Perth.

Rio says the new space, valued at around $15 million and dubbed Echo 2, will complement the existing office space known as Echo 1, and Rio Tinto's Operations Centre, which are both located near Perth's Domestic Airport.

According to the AFR a recent strategy review showed Rio has recorded 30% rise in support and services costs 2011, with expectations that this figure will rise by another 16% this year.

Possible job cuts have previously been flagged in Sydney and Melbourne, with some roles likely to be relocated to Perth or Brisbane.