Newmont Corporation Weighs Thousands of Job Cuts Amid Cost Pressures

Newmont Corporation, the world's largest gold producer, is considering significant cost-cutting measures that could result in thousands of job losses. The review follows its $15 billion acquisition of Newcrest Mining Ltd. in 2023, which expanded its portfolio to about 20 mines and increased exposure to copper. Newmont is targeting cost reductions of as much as $300 per ounce, or roughly 20%, to align with low-cost peers such as Agnico Eagle Mines Ltd. The cost surge is partly tied to Newcrest assets, and the company has faced surging costs since the deal, with its all-in sustaining costs (AISC) per ounce hitting a record high earlier in 2025. Despite historic gold prices, elevated operating costs have weighed on profit margins.

Newmont Corporation, the world's largest gold producer, is reportedly considering substantial cost-cutting measures that could result in thousands of job losses. The review comes in the wake of its $15 billion acquisition of Newcrest Mining Ltd. in 2023, which expanded its portfolio to about 20 mines and increased exposure to copper [1][2][3].

Newmont is targeting cost reductions of up to $300 per ounce, roughly a 20% decrease, to align with low-cost peers such as Agnico Eagle Mines Ltd. [1][2][3]. The cost surge is partly tied to Newcrest assets, with the company facing elevated operating costs since the deal. Its all-in sustaining costs (AISC) per ounce hit a record high earlier in 2025 [3].

Despite historic gold prices, which have boosted Newmont shares by 95% this year, elevated operating costs have weighed on profit margins. The company has reported quarterly earnings of $1.43 per share, which beat the analyst estimate of $1.12, but the costs remain within its guidance for 2025 [3].

Newmont launched a cost and productivity improvement initiative in February, with organizational changes as part of a broader effort to streamline operations. The company has also concluded its portfolio optimization initiative, which ended with the sales of its Akyem mine in Ghana and the Porcupine operation in Canada [3].

The cost surge is partly tied to Newcrest assets such as Papua New Guinea’s Lihir mine and Australia’s Cadia operation, both of which have struggled with rising expenses. Over the past five years, Newmont’s AISC has increased more than 50%, fueled by higher energy, labor, and material costs [3].

The company has signaled that costs remain within its guidance for 2025 but expects further inflationary pressure in the year’s second half [3].

References:
[1] https://www.investing.com/news/stock-market-news/exclusive-newmont-clarifies-strategic-focus-behind-cost-initiative-4213010
[2] https://investorshub.advfn.com/market-news/article/15316/newmont-considers-workforce-reductions-amid-major-cost-cutting-drive
[3] https://www.benzinga.com/trading-ideas/movers/25/08/47357624/worlds-biggest-gold-miner-newmont-weighs-thousands-of-job-cuts-as-cost-pressures-mount