1,400 Jobs to be Cut at Teck Cominco

By 250 News

Vancouver BC - The economic downturn has hit Teck Cominco Limited.   The company has announced it will reduce its global workforce by about 1,400 positions, or 13%.  It is part of the company's broader strategy to reduce costs and bolster competitiveness in the face of persistently weak commodity prices. The workforce reduction is expected to generate annual savings of approximately $85 million. Teck also said it plans to reduce coal production in 2009 to 20 million tonnes due to declining global steel demand.

Each strategic business unit is adjusting personnel levels to protect operating margins given difficult commodity markets. The company is also significantly reducing staff and contractors associated with exploration activities and research and development. Finally, the workforce reductions will eliminate redundancies at the corporate level created by Teck’s recent acquisition of Fording Canadian Coal Trust’s assets.

“Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs and position Teck for both short and long-term competitiveness,” said Don Lindsay, President and CEO. “Notwithstanding the substantial decline in commodity prices, this was a difficult decision and I want to thank the affected employees for their contributions to the company.”

In total, about 1,000 employee and 400 contractor positions will be eliminated by the end of 2009, with the majority of the reductions to be completed in the first quarter. Teck expects to take a charge of approximately $35 million in the first quarter for severance and other related costs associated with this reduction.

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