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Teck Resources (TSX:TCK.A) announced $650 million in cost reduction measures, due in part to the elimination of a further 1,000 positions at Teck’s global offices and operations.
Teck Resources (TSX:TCK.A) announced $650 million in cost reduction measures, due in part to the elimination of a further 1,000 positions at Teck’s global offices and operations.
As quoted in the press release:
In response to persistent low commodity prices, Teck is implementing additional measures to reduce costs and conserve capital:
- Reduction in total spending of $650 million in 2016, to be achieved through $350 million of capital spending reductions and deferrals and $300 million of operating cost savings identified as part of the 2016 operating budget.
- Elimination of an additional 1,000 positions across Teck’s global offices and operations, through a combination of layoffs and attrition. This will include a reduction in senior management positions and brings total labour force reductions over the past 18 months to approximately 2,000 positions.
- Withdrawal of the Coal Mountain Phase 2 (CMO Phase 2) project from the Environmental Assessment process and suspension of further work on the project.
The capital reductions and deferrals described above are in comparison to preliminary 2016 capital spending plans. The 2016 capital budget is still under review and Teck will announce forecast 2016 capital spending in February 2016.
Teck President and CEO, Don Lindsay, said:
We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions. These steps build on our ongoing cost reduction program and I want to thank all employees for their efforts to improve efficiency and productivity, while remaining keenly focused on safety and sustainability.