AngloGold warns of major job cuts in South Africa

AngloGold warns of major job cuts in South Africa

AngloGold Ashanti (JSE:ANG) has cautioned that it may have to cut up to 8,500 workers in South Africa, up to 30% of its workforce.

The world’s third largest gold producer revealed it was considering the possibility of a considerable cut to its workforce in a company statement, and had begun talks with unions on potential redundancies.

The announcement comes on the back of reduced production levels from AngloGold’s aging South African mines, which combined with sliding metal prices to result in a 16% drop in Q1 profit for the firm in 2017.

Chief Executive Officer Srinivasan Venkatakrishnan, said: “It is critical that we act to protect the long-term sustainability of this business and the majority of our workforce.”

However, the possibility of significant job losses across its South African operations has shocked trade union group the National Union of Mineworkers (NUM).

“The NUM is extremely angry and shocked that Anglogold Ashanti is likely to retrench such a huge number of workers at a time when there is a high rate of unemployment in the country,” said spokesperson Livhuwani Mammburu.