Mining giant Rio Tinto will speed up its outsourcing and offshoring programme as well as delay a number of projects in an effort to cut capital and running costs.
The firm said this morning it would cut "rapidly accelerate" outsourcing and off-shoring of IT and procurement in 2009. It would also consolidate offices in the group, including the London head office, and cut staff by 14,000, comprising 8,500 contractors and 5,500 employees.
This would save annual operating costs of $1.2bn, but incur upfront severance costs of $400m, it said.
It would cut net capital expenditure guidance for 2009 from over $9bn to $4bn, and reduce controllable operating costs by at least $2.5bn/y in 2010.
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