AngloGold Ashanti To Cut 900 Jobs In Response To Falling Gold Prices

Henry Cobblah November 12, 2014

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JSE-listed gold miner, AngloGold Ashanti, is set to retrench some of its staffers by giving them voluntary severance packages as the lower gold prices and rising costs take their toll, it said on Tuesday.

“We have offered voluntary severance packages to staff, which is part of our self-help measures we announced at our quarterly results to further reduce costs and enhance efficiency,” Reuters quoted spokesman, Chris Nthite, as having said.

A union source close to negotiations with the company, told Reuters that 1,200 spots had been impacted in South Africa alone.

Additionally, AngloGold is currently looking at seconding 300 workers to other spots while also retrenching 900 workers.

In the third quarter to September, AngloGold posted a marked drop in earnings, hit by a lower gold price, inflationary pressures and higher tax charges.

According to Reuters, AngloGold Ashanti told staffers in an internal memo that all workers were allowed to apply for severance packages.
“Applications will open on Tuesday and the company wants to cut jobs in over-staffed areas, with a preference given to employees who are over 55 years old, according to the memo,” Reuters quoted the memo as having said.

“As unions we now have to seriously consider our demands so we don’t aggravate a situation that can lead to more job losses,” the union source told Reuters.