Australian mining firm BHP Billiton is reportedly planning to cut a further 3,000 jobs in the iron ore division in its efforts to reduce costs.
The company is in a situation where it needs to control costs due to decreasing price of iron ore triggered by low demand from China.
The prices fell by more than 30% in 2014 due to low demand in China, which is the main market for Australian iron ore.
Last week, the price of iron ore was down to $90 per tonne, the lowest since September 2012.
The 3,000 job cuts represent 20% of BHP’s total workforce of 16,000, reported Australian Broadcasting Corporation.
The jobs are likely to be cut following an ongoing review of the business by McKinsey & Company.
A BHP spokeswoman said the job cuts were necessary so the company could remain competitive.
"This is about continuing to safely improve our business and ensuring we are a competitive, world-class operation," she said.
"BHP Billiton Iron Ore regularly undertakes improvement initiatives and organisational reviews as part of an ongoing focus on productivity, and we have engaged external consultants to assist with this process."
Meanwhile, there are workforce rumours that 100 jobs would be cut at BHP’s Port Hedland operations including Nelson Point stockyards, ship-loading and docks operations, reported The West Australian.
BHP axed 100 jobs at its Perth office earlier this month and 500 jobs at its north-west iron ore operation in May.
Image: Mount Whaleback iron mine owned by BHP Billiton in Pilbara. Photo: courtesy of Graeme Churchard.