Gold miner Newcrest will likely cut about 100 positions in the coming weeks as its shuts down its Brisbane CBD office and consolidates corporate functions in Melbourne.
The job cuts comes amid what has been described as the worst gold price slide in decades. Newcrest shares have lost almost a quarter of their value in the past three days.
ASIC is now investigating “how some investors appeared to anticipate Friday’s announcement of deep job cuts, reduced gold production and multi billion dollar impairments”, Peter Ker of the SMH reports.
A Newcrest spokesman told Business Insider this afternoon:
“Newcrest employees at its Melbourne and Brisbane offices were advised on Friday 7 June that the Brisbane office activities are to be consolidated into the Melbourne head office by end September.
There are over 100 positions in the Brisbane office and we are working through which roles will transfer to Melbourne over the next several weeks. Some Brisbane roles will transfer to Melbourne and some will be made redundant.
Some existing roles at Melbourne will also be reduced during this consolidation … The reason we are consolidating our group activities into the Melbourne Newcrest head office is to reduce costs and improve efficiency.”
Newcrest has corporate offices in Perth, Brisbane and Melbourne, and cut 150 jobs from the latter two earlier this year as it halted exploration, scoping studies and growth.
It acquired the Brisbane office with Papua New Guinean miner LGL in 2010.
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