Mining major BHP is reportedly planning to cut more than 700 jobs across the globe, a move which is part of the company’s restructuring of what it calls “functional” sections to streamline its operations.
As reported by The West Australian, the process is expected to start as early as next week.
It is believed that the job cuts will apply to white collar functions such as human resources, finance and technology.
A BHP spokesperson was quoted by WestBusiness as saying that the company was working to simplify its business and streamline processes.
The spokesperson added: “This work began about 12 months ago and is across functions including, finance, human resources, technology and external affairs. The programme is ongoing and part of BHP’s cultural transformation agenda.”
Out of the total job cuts, up to 200 will be in the company’s office located in Perth, Australia.
The latest move comes after BHP’s underlying profit from continuing operations declined from $4.4bn to $4.03bn during the second half of last year, lower than estimated profits of $4.2bn.
BHP’s technology group is also expected to face job cuts as part of a restructuring that could see the exit of up to 30% of the company’s 2000 workforce in Australia and Singapore.
The company said that its iron ore production would take a hit of about six million to eight million tonnes based on initial estimates, due to damage caused by tropical cyclone Veronica last week.
As a result, the company’s financial year production for this year and unit cost guidance are currently under review.