Job Cuts Amid Gold Operations
Metals giant Sibanye Stillwater has announced the reduction of approximately 2,000 positions within its gold operations. This decision, revealed on Tuesday, marks a significant cut from the initial 4,000 jobs that were under threat during the recent rounds of restructuring discussions.
Details of the Reductions
Sibanye Stillwater previously hinted at potential layoffs affecting around 4,000 employees and contractors. The latest figures show:
- 111 employees retrenched
- 1,130 contractors affected
- 629 employees opting for voluntary separation or early retirement
- 116 positions lost through natural attrition
- 448 employees transferred
Employment Numbers and Impact
By the end of 2023, Sibanye’s South African gold operations employed roughly 28,000 people, with over 6,000 being contractors. Across South Africa, the company’s workforce numbered 80,000. As of the latest announcement, the restructuring efforts since early 2023 have reduced the South African workforce to about 70,000.
Stakeholder Engagement and Retrenchments
The overall reduction amounts to a 14% workforce decrease. However, Sibanye Stillwater emphasized that negotiations with labor and other stakeholders helped limit forced retrenchments to 966 out of a potential 11,500.
Continuation of Operations
In a noteworthy development, Sibanye Stillwater has agreed to keep its Beatrix 1 shaft in the Free State operational. This decision is contingent on maintaining no net losses over a trailing three-month period starting from June 1. Beatrix 1 shaft employs 422 employees and 100 contractors.
CEO’s Statement on Restructuring
Neal Froneman, CEO of Sibanye Stillwater, expressed optimism regarding the restructuring efforts. He stated:
“We have restructured the SA region to align with the reduced operating footprint following the necessary operational restructuring for greater regional sustainability and profitability and we are well positioned for ongoing shared value delivery.”
Froneman also highlighted the collaborative approach taken during the restructuring:
“It is extremely encouraging that the restructuring efforts undertaken in the SA region have not only successfully and proactively addressed loss-making operations thereby securing the benefits and value they continue to bring to multiple stakeholders, but through cooperative consultation with stakeholders, limited forced retrenchments to just 8% of total employees impacted since January 2023.”
For more updates, follow us on Twitter.