Rio Tinto to cut more Aussie jobs

Rio Tinto CEO Sam Walsh says the company will have to cut more jobs in Australia in order to save $US5 billion by 2014.

Rio Tinto CEO Sam Walsh says the company will have to cut more jobs in Australia in order to save $US5 billion by 2014.

While Walsh told the Financial Review Sunday program there would be further reductions in Australia, he did not specify the sites that would be impacted by the cuts.

 

He also said there was no specific number of jobs the company was aiming to cut.

 

“We don't have targets for reductions in people,” he said.

 

“We do have targets for reduction in costs and we're working thorough that and addressing that business by business.”

 

Walsh said cutting further jobs in Australia would be a “very tough” decision but was necessary to keep Rio competitive.

 

Overall Walsh said the company was “doing okay” but a slide in activity from China was expected to dent future commodity demand.

 

“First quarter we saw a dip in China. We've seen increased commitment to infrastructure and an easing of credit and we expect that will flow through to steel production and iron ore demand,” he said.

 

Earlier this year Rio announced its first full-year loss after taking a massive writedown on the value of its aluminium and coal assets.

 

The company has since outlined a plan to cut costs and sell-off a number of non-core assets.

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