BHP Group to cut more than 700 jobs: Report , Latest Business News - The New Paper

BHP Group to cut more than 700 jobs: Report

This article is more than 12 months old

Report says BHP Group could start process as early as next week

MELBOURNE The world's biggest miner, BHP Group, is poised to cut over 700 white-collar jobs, The Australian newspaper reported, adding that the process could start as early as next week.

Last week, BHP chief financial officer Peter Beaven revealed plans of cuts of up to 20 per cent to his 900-strong finance team at an internal town hall meeting, the newspaper said.

BHP's technology group will also face cuts in workforce as part of a restructuring that could see up to 30 per cent of its 2,000 Australian and Singaporean workforce leave the group, Reuters quoted the report as saying.

The cuts are not targeted at the workforce operating BHP's global mines but will be part of its restructuring of "functional" sections in an attempt to streamline their operations, The Australian reported.

BHP will cut jobs in a continuing effort to reduce bureaucracy under a previously foreshadowed streamlining strategy, a person familiar with the matter said, reported Reuters.

A spokesman for BHP declined to comment on The Australian report, but said the process of simplifying the business and support facilities has been underway for about a year, Bloomberg reported.

"This work began about 12 months ago and is across functions including finance, human resources, technology and external affairs," the spokesman said in an e-mailed statement.

A BHP spokesman told the West Australian that the company was working to remove duplication, bureaucracy and hierarchy in its support functions.

"The programme is ongoing and part of BHP's cultural transformation agenda."

The changes come less than six weeks after the mining giant announced a major shake-up of its senior management, with the promotion of three women to key positions on its executive leadership board and the appointment of a chief transformation officer, Bloomberg reported.

Last Tuesday, the company had said initial estimates indicated its iron ore production would take a hit of about six million to eight million tonnes after disruption and damage caused by tropical cyclone Veronica last week, Reuters reported.

BHP said its 2019 financial year production and unit cost guidance are under review because of the cyclone that hit Western Australia. - REUTERS