US-based coal producer Peabody Energy has announced that it plans to reduce approximately 250 corporate and regional positions in the coming months to create a leaner organization and lower costs. When fully implemented later this year, these reductions are expected to save $40 million to $45 million per year.
The reductions represent approximately 25 percent of corporate and regional support positions, and the majority of reductions are expected to occur in the second quarter. Actions also include closing of offices in Evansville, Indiana and Gillette, Wyoming.
As SteelOrbis previously reported, Peabody is also reducing coking coal production by approximately 1.5 million mt per year from its North Goonyella Mine in Queensland, Australia to lower costs, improve cash flows and increase productivity.