Anglo American to axe 19,000 jobs after profits slide

British mining giant Anglo American said on Friday it would cut 19,000 jobs...

British mining giant Anglo American said on Friday it would cut 19,000 jobs this year after posting a 29 per cent fall in 2008 net earnings to $5.2 billion (4.1 billion euros) because of the downturnThe group said in an annual results statement that it was reacting to sharp falls in commodity prices brought on by a contraction in the global economy“As we begin 2009, the economic outlook remains weak, with limited visibility and we are continuing to experience volatility and downward pressure on commodity prices,” said Chief Executive Cynthia Carroll in the release.“Against this backdrop, we have acted decisively to position the group through the downturn, including pulling back planned production growth, reducing the size of our workforce by 19,000 by the end of 2009 in line with our revised production and growth plans and further cost cutting.”The cuts, amounting to 10 per cent of the company’s global workforce, are part of a drive to save $2.0 billion a year between now and 2011. The job cuts include the 10,000 announced last week by Anglo Platinum, the world’s biggest platinum producer which is 77 per cent owned by Anglo American.Anglo American’s revenues fell 7.6 per cent to $32.964 billion last year, while the group added that it had suspended shareholder dividend payments and will not give a dividend for 2008.In reaction, Anglo American shares slumped 13.59 per cent to 1,068 pence on a London market that was down 2.53 per cent at the half-way stage.“The dividend cut is a big disappointment and removes a key leg of the investment case,” warned Jonathan Jackson, head of equities at stockbrokers Killik & Co. “However, the statement provides reassurance the group does not, at present, need to return to shareholders for further capital.”