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The Guardian reported that Fortescue Metals Group (ASX:FMG) will be cutting roughly 700 jobs amid low iron ore prices, according to company CEO Andrew Forrest.
The Guardian reported that Fortescue Metals Group (ASX:FMG) will be cutting roughly 700 jobs amid low iron ore prices, according to company CEO Andrew Forrest.
As quoted in the market news:
Forrest described the job cuts, from a workforce of about 4,500, as “personally tragic” and “heartbreaking”, but said the iron ore company was still making profits, with a break-even price of about US$39 a tonne.
The iron ore price has rebounded to about US$62 a tonne after heading towards US$40 last month.
Forrest noted Fortescue’s rivals Rio Tinto and BHP Billiton had a break-even price of about US$30 a tonne, and the latter announced plans on Tuesday to slash costs at its WA iron ore mines to US$16 a tonne.
The billionaire and philanthropist took another swipe at the mining giants for increasing output when prices were low.