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SOUTH JORDAN — Rio Tinto Kennecott announced Wednesday that the company has cut just over 3 percent of its Utah workforce.
The company reduced its existing support services staff by 65 jobs, moved 40 employees to alternate roles within the business and will not hire 74 open positions.
The layoffs impacted salaried employees who supported plant operations, said spokesman Kyle Bennett. The company is offering severance packages and employee assistance to those workers affected by the layoffs.
Bennett said the cost-cutting move came amid a sharp decline in commodity prices and a poor outlook for metals prices. Kennecott will now focus on critical business needs in a more streamlined fashion, he said.
"The business is facing some near-term challenges, one of which is weak metal prices," he explained. "It's forced us to make the difficult decision to eliminate these roles."
He said the company would continue to improve efficiencies in an effort to strengthen the business. The company currently employs about 2,000 people in Utah.
Bennett said the market for commodities has been on a downward trend for a while and the cuts are necessary for the long-term viability of the business.
"The near-term outlook is weak, and prices have weakened for quite some time," he said. "We have to make sure our business is financially sustainable moving forward."
Despite the economic and financial realities that necessitated the cutbacks, having to see co-workers leave is not an easy determination to make, said Rio Tinto Kennecott managing director Nigel Steward.
"We know these decisions have personal consequences for the people involved and their families, as well as the employees who remain, and we are committed to helping everyone manage through this difficult transition," Steward said. "These changes are necessary to make sure our business stays strong, and we continue to contribute to the state's economy during an especially challenging time for our industry."
