RIO Tinto is planning to slash 1100 workers from its global aluminium division because of the economic slowdown.
According to Rio Tinto Alcan, plans are in place to cut 300 contractor positions and up to 800 employee roles.
Rio Tinto Alcan CEO, Jacynthe Côté, says the cuts are part of “substantial cost reduction programs” being implemented across the company’s aluminium sector as demand remains weak and uncertain.
Côté says more than two-thirds of aluminium operations around the world could be losing money at current prices, which are just above $0.90 a pound.
"Until the demand picks up, we have to expect more production curtailments," she said.
Experts claim the slump in demand for aluminium is largely in part from uncertain customers in the auto sector.
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