Andrew Twiggy Forrest’s Fortescue mining company has announced it will cut 700 jobs.
The Aussie mining giant told its nearly 16,000 employees that it will primarily target white-collar positions, including senior management, on Wednesday afternoon.
The decision comes after the mining company now sets its sights on producing cheap renewable energy at scale.
The company’s change of direction means it is unlikely to achieve its goal of producing 15 million tonnes of green hydrogen a year by 2030.
In a statement to the Australian Stock Exchange, Fortescue said the restructure meant the Perth-based mining company was implementing ‘initiatives’ that will ‘simplify its structure, remove duplication and deliver cost efficiencies’.
‘The Company must continually evolve to ensure it remains lean, is best positioned to deliver on its strategy and generate the maximum value for shareholders,’ the statement read.
‘As part of this, approximately 700 people from across Fortescue’s global operations will be offered redundancies, with that process to be finalised by the end of July 2024.
‘Fortescue is grateful for the contribution of all those impacted by these changes.’
Andrew Twiggy Forrest’s Fortescue mining company has announced it will cut 700 jobs
Fortescue said it remained ‘resolute in its commitment to be the world’s leading green technology, energy and metals company with a laser focus on achieving Real Zero by 2030’.
‘The company has undergone a period of rapid growth and transition, and as part of bringing together Metals and Energy into One Fortescue, initiatives are being implemented to simplify its structure, remove duplication and deliver cost efficiencies,’ Fortescue said.
In a separate statement, Forrest also said the company was committed to achieving its decarbonisation goals by 2030 and that ‘without change, improvement is impossible’.
‘Being a first mover isn’t easy, but as we learnt 21 years ago, risk is always worth the reward,’ he told the ABC.
‘Part of the reason Fortescue is the highest performing company on Australia’s Stock Exchange is that we do things differently.
‘We do not apologise for requesting people leave their corporate culture behind when they join us… nor will we apologise when we don’t look like everyone else.’
The Perth-based mining company will face a major restructure
Fortescue appointed acting chief financial officer Apple Paget to the role on a permanent basis.
Chief corporate officer Shelley Robertson has also changed roles to now fill the position of chief operating officer.
More to come.
