Anglo American cuts 2,700 jobs

London--Anglo American plc announced today that it is slashing its overhead staff by 25 percent, a move the company estimates will save it $120 million a year. According to a release from the London-based mining company, which holds a 45 percent stake in De Beers, Anglo American is streamlining its management structure and intensifying its focus on its "core mining portfolio." As a result, Anglo American is creating seven commodity business units (BUs), with management teams located in the area of core geographic focus for the BU. The BUs, their locations and chief executive officers are: ?Platinum (South Africa): Neville Nicolau ?Copper (Chile): John MacKenzie ?Nickel (Brazil): Walter De Simoni ?Metallurgical Coal (Australia): Seamus French ?Thermal Coal (South Africa): Norman Mbazima ?Kumba Iron Ore (South Africa): Chris Griffith ?Iron Ore Brazil (Brazil): Stephan Weber Five group directors, based in London, will be responsible for corporate functions and providing support to the BUs, and group directors and BU CEOs will report directly to Anglo American CEO Cynthia Carroll, according to the release. The cuts and restructuring will have no direct impact on De Beers, according to a De Beers spokeswoman. Anglo American's decision to divest certain core assets--Scaw Metals, Copebras, Catalao and the group's portfolio of zinc assets--builds on the initiatives completed over the last three years, including the de-merger of the Mondi Group and the sale of the group's shareholdings in AngloGold Ashanti, Highveld Steel and Vanadium, Namakwa Sands and, most recently, Tongaat Hulett and Hulamin. As a result of the reorganization, Anglo American is removing a layer of global management--a total of 2,700 employees are being cut--creating a more effective organization with greater clarity in decision-making and quicker implementation, the release states. "I believe that these actions will position Anglo American well for sustained, profitable growth in the commodities we have identified as being the most attractive," Carroll said in the release. "The portfolio changes we have announced are the logical next step in focusing the group on our core mining activities, enabling us to strengthen our balance sheet further." She added that the de-layering also gives a new generation of executive management the chance to move up. "I would like to thank Philip Baum, Ian Cockerill and Russell King for the key leadership roles they have played at Anglo," Carroll said. "I have greatly appreciated their valuable contributions to the success of the group and I wish them well for the future."