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Rio Tinto Kennecott announces layoffs, cites market decline

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Posted at 7:10 PM, Mar 03, 2016
and last updated 2016-03-03 21:10:30-05

SOUTH JORDAN, Utah — Rio Tinto Kennecott announced a reduction in headcount Thursday and stated the layoffs are due to ongoing cost reductions amid a continued commodity market decline.

About 200 employees, including both hourly and salaried positions, are affected by the move, and in a press release the company said they are providing severance packages and employee assistance to those who had their roles eliminated.

“We know these decisions have personal consequences for the people involved and their families, and the employees who remain, and we are committed to helping everyone manage through this difficult transition,” stated Nigel Steward, managing director at Rio Tinto Kennecott. “These changes are necessary to ensure our business stays strong, to preserve our future and to continue contributing to the state’s economy during this challenging time in our industry.”

The release states weak commodity prices and a continued commodity market decline prompted the cost reductions and layoffs.

According to a press release, Rio Tinto Kennecott employs 1,620 people.