Anglo American, one of the largest mining companies in the world, has announced a restructure that will cut 85,000 jobs worldwide, a reduction of its workforce by almost two-thirds. The move follows a huge downturn in commodities prices, which have been decreasing since 2011 and have hurt the revenues and profits of mining companies across the globe.
The global mining industry is capital-intensive but has high net profit margins, with 20–27 percent reported in the mid-2000s. Falls in commodity prices detrimentally affect the bottom line, and so the decision of multinational mining company Anglo American to slash its workforce—though dramatic—is not altogether surprising. It reflects the global trends across the commodities industry.
This will provide no solace to those losing their jobs, however. Lessons from other countries that have experienced mine closures show that cutbacks will have a profound effect on the workers and communities they are part of.
