Newmont Announces 300 USD Cost Cut Per Ounce, Thousands of Jobs at Risk

Newmont Corporation, the world's largest gold mining company, has announced significant cost-cutting measures to reduce its cost per ounce of gold by approximately 300 USD. The company has not specified the exact number of job cuts, but industry insiders suggest that achieving this cost target may require the elimination of thousands of positions. Newmont aims to reduce its cost per ounce to the lowest level in the industry, which means lowering costs by approximately 300 USD per ounce.

In the quarter ending June 30, Newmont reported an all-in sustaining cost of 1593 USD per ounce of gold, a 2% increase from the previous year. This cost-cutting initiative comes after the company's acquisition of Newcrest Mining, an Australian mining company, for tens of billions of USD last year. As part of the acquisition, Newmont announced plans to divest non-core assets, streamline its workforce, and reduce debt.

As of December 31, 2024, Newmont had 22,200 full-time employees and approximately 20,400 contract workers. The company has begun notifying some employees about the potential job cuts, and management is discussing further cost-reduction strategies, which may include scaling back long-term incentive programs.

Newmont's cost-cutting measures are part of a broader effort to align its cost structure with the industry's lowest-cost producers. The company's goal is to reduce its all-in sustaining cost per ounce of gold by 300 USD, which would bring it closer to the industry average. This initiative is expected to have a significant impact on the company's workforce, with thousands of jobs potentially at risk.

Newmont's cost-cutting measures are a response to the challenging economic environment and the need to maintain competitiveness in the gold mining industry. The company's decision to reduce costs through job cuts and other measures is a reflection of the broader trend in the mining industry, where companies are under pressure to improve their financial performance and maintain profitability in a volatile market.