Fortescue Metals CEO Andrew Forrest says the company will be making hundreds of white-collar workers redundant globally.
He told reporters that the move will allow the company to pursue its green energy goals.
Despite the iron ore price’s healthy outlook, he says the job cuts are not a sign that the company’s green energy division is faltering.
Despite the layoffs, Andrew says the company’s direct workforce is still over 4 percent lower than its peak.
He attributed the reduction to the company’s simplification and the One Fortescue project. He also noted that there will be changes within the business.
The company’s decarbonisation strategy is partly driven by its energy division.
Mr Forrest said that the company will be streamlining its operations to become the world’s most energy-efficient mining company.
He did not reveal the exact number of jobs that will be affected by the cuts, but he noted that most of them are white-collar positions. The Nightly made inquiries to Fortescue about the layoffs three weeks ago.
A spokesperson for Fortescue immediately denied the claims when contacted. In 2023, there were around 11,700 workers at the company.
Four years ago, Fortescue launched its green energy division. It started a recruitment drive that led to the establishment of over a thousand staff members.
Over the past year, various executives from the company have left their positions. This is the latest in a series of changes within the company’s leadership team.
Apple Paget will take over as the company’s chief financial officer, effective immediately.
Phil McKeiver will also step down from his position as the company’s secretary, but will remain as the company’s general counsel.
Mr Forrest said that Mr McKeiver had offered to resign from his position, but the company’s chief executive officer, Dino Otranto, and Mark Hutchinson, the head of Fortescue Energy, rejected his resignation.
This announcement came after court documents revealed that Fortescue was secretly monitoring the activities of the wives and children of its former scientists who were involved in the development of hydrogen technology.
Mr Forrest noted that the company’s chief executive officer and the head of its energy division rejected Mr McKeiver’s resignation.
In addition, Shelley Robertson, the chief corporate officer of Fortescue, will be promoted to the role of chief operating officer.
She previously served as the head of the energy division of Mineral Resources. The company is currently moving its operations to a new location at St. Georges Terrace, which used to be the headquarters of Chevron.