Rio Tinto will sack some staff

Mining giant Rio Tinto to cut 14,000 jobs | Business News | News.com.au

* Rio Tinto in $38.9bn debt
* Will cut 14,000 jobs worldwide
* Offices to be consolidated

DEBT-LADEN mining giant Rio Tinto is axing 14,000 staff and contractor jobs worldwide because of the unprecedented speed and severity of the economic downturn.

The move to end 5500 of its 97,000 employee roles and 8500 of its 15,000 contractor jobs comes just over a fortnight after BHP Billiton Ltd aborted a hostile $100 billion bid for Rio Tinto, partly because of its massive debt.

Analysts and ratings agencies have also slammed the company for the debt - currently sitting at about $US41 billion - as the global miner's share price has plummeted from $63.90 just before BHP Billiton walked away, to $37.40 today.

Rio Tinto chief executive Tom Albanese says the staff cuts would save the company $US1.2 billion a year.

"Given the difficult and uncertain economic conditions, and the unprecedented rate of deterioration of our markets, our imperative is to maximise cash generation and pay down debt," Mr Albanese said.

Good luck getting rid of those 75,000 Alcan workers Tom. I think you might have a little trouble with the Canadian government over that one. What a goose!

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Rob of Cairns

"By taking these tough decisions now we will be well positioned when the recovery comes."

Rio Tinto, one of the world's largest miners, has 17,000 employees and several thousand contractors in Australia at any one time.

Mr Albanese would not say how many Australian jobs would go, only that stakeholders and employees would be told first.

"It's important for us to have those stakeholder discussions and give those appropriate care and appropriate respect," he said.

Rio Tinto will also consolidate its offices around the world but headquarters in major countries, such as Australia, will not be affected, Mr Albanese said.