JOHANNESBURG (Reuters) – The South African arm of steelmaker ArcelorMittal expects to plunge to a first-half loss and cut more than 2,000 jobs as it struggles with cheap imports, rising costs and a flagging local economy, it warned on Wednesday.
Shares in the company, majority-owned by ArcelorMittal , dropped more than 10% after it said previous initiatives to reduce costs had proved insufficient and so it was contemplating a “large-scale” restructuring.
Measures - Review - Staffing - Levels - Interventions
“More significant measures have become necessary, including the review of staffing levels, together with other interventions,” it said in a statement.
“It is anticipated that in excess of 2,000 positions (full time equivalents) may be affected,” it continued, adding the final number was subject to formal consultation.
Company - People - Report - Year
The company employed around 8,850 people in 2018, according to its annual report for that year.
ArcelorMittal South Africa, which has for some time complained about cheap imports eating into its business, said ongoing challenges in the steel industry as well...
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