Rio to cut jobs on concerns over China slowdown
Rio Tinto (ASX:RIO) has announced further retrenchments and cost cutting measures due to concerns that the slowdown in China's economic growth will be more pronounced than expected.
According to Fairfax Rio CEO Tom Albanese said in London last night that his expectations for Chinese commodities demand have weakened compared to several months ago, and that the company will press ahead with further cost cuts.
The cost cutting measures will entail reductions in employment levels, although Albanese remained mum on the scale or location of any future retrenchments.
CAPEX spending will also be scaled back significantly, with Albanese saying that new projects will be subjected to "even greater scrutiny" and that a number of plans, including those for the expansion of coal exports from Mozambique, are likely to be deferred.
Albanese's remarks arrive right on the heels of BHP's announcement of retrenchments for its iron ore operations in Australia due to dwindling commodities demand from China and ailing spot prices.
Image of Tom Albanese courtesy of Credit Suisse via Youtube