Newmont plans sweeping job cuts in cost-cutting drive – report

Newmont (NYSE: NEM), the world’s largest gold miner, is preparing a major cost-reduction plan that could lead to thousands of job losses, Bloomberg reported on Wednesday, citing people familiar with the matter.

The Denver, Colorado-based miner is said to be targeting a reduction of as much as $300 per ounce in all-in sustaining costs (AISC). That would represent a cut of about 20% and bring Newmont closer in line with its lowest-cost peers.

Rising costs

Newmont’s costs have surged in recent years, climbing more than 50% over the past five years due to higher energy, labor, and material prices. The situation reportedly worsened following its $15 billion acquisition of Newcrest in 2023, which expanded the mining portfolio to about 20 operations, including copper assets.

In the second quarter of 2025, Newmont reported an AISC of $1,593 per ounce, nearly 25% higher than Agnico Eagle Mines, one of the industry’s lowest-cost producers. The Lihir mine in Papua New Guinea and the Cadia operation in Australia, both legacy Newcrest assets, continue to struggle with cost overruns and underperformance.

Job cuts, structural changes

According to Bloomberg, Newmont has already begun notifying staff of redundancies, with executives and division managers holding calls to discuss job cuts and other measures. Alongside workforce reductions, the miner is considering scaling back long-term incentives as part of the restructuring.

At the end of 2024, Newmont employed 22,200 people and had an additional 20,400 contractors. While the company has not disclosed how many positions may be eliminated, sources told Bloomberg the cuts could affect “thousands” of employees.

The miner has hired Boston Consulting Group to assist with the cost-cutting plan, though no final decisions have been announced. A Newmont spokesperson said the company is executing on a cost and productivity program launched earlier this year.

The cost-cutting push comes even as the gold sector is benefiting from record bullion prices. Gold reached an all-time high of $3,500 an ounce in April and has mostly traded above $3,300 since, lifting gold equities. Newmont’s stock has surged 95% year-to-date.

“The bigger challenge for Newmont was that all the Newcrest assets were at a tough part of their life-cycle,” Bloomberg Intelligence analyst Grant Sporre said.

“They were and are still under-producing versus their employee base and need a lot of sustaining capex to catch up.”

“Moves to reshape our structure reflect one of several steps we are taking in 2025 to reduce our cost base and improve productivity — positioning Newmont to deliver on our commitments to shareholders and partners across a range of gold price environments, and for the long-term success of the business,” Newmont said in a statement.

(With files from Bloomberg and Reuters)