Anglo American has pledged to cut more than 2,700 jobs and sell off $10bn of non-core assets as it looks to streamline following the abandonment of its proposed merger with Xstrata. The mining group is to lose a quarter of its management staff, including three of its senior management team. The firm argued the latest move, in addition to the 15,000 job cuts already announced, showed it was responding to shareholder disaffection.
- The reaction?
CEO Cynthia Carroll said: 'The changes are the logical next step.' The Guardian wrote that the restructuring was 'seen by the City as a clear attempt to streamline Anglo ahead of any further takeover moves by Xstrata'. Takeover rules mean Xstrata cannot bid again for another six months. The Daily Telegraph said: 'Its stalker, Xstrata, won't be feeling discouraged yet'.
- Who are the PR players?
Anglo American retains FD and has used Brunswick to aid its bid defence. Nick von Schirnding is the firm's head of investor and corporate affairs. The firm appointed Tony Blair's former aide Anji Hunter as group head of government and social affairs back in May.
- What happens next?
Investor disquiet over Anglo American's recent performance has been widely reported, but its successful defence against Xstrata's advances now gives it valuable time to win any disgruntled investors over to the benefits of its ongoing independence. The job cuts and asset sales indicate the firm is serious about re-focusing on its core mining business, but Xstrata's interest looks unlikely to cool in the intervening six months.
2,700 - Number of jobs Anglo American plans to cut.