Peabody Energy announces employee cuts
Effects on Twentymile aren't clear
Peabody Energy, owner of Twentymile Mine, announced Wednesday that it plans to save roughly $40 to $45 million a year by cutting 250 salaried positions within the company “to create a leaner organization with lower costs.”
The cuts will be carried out later this year. It’s not clear if or how the cuts will affect Twentymile. The mine is located in Routt County near Hayden and employs approximately 345 people.
“While we regret the impact that these actions have on employees, their families and communities, today’s announcement represents another necessary step to drive the company lower on the cost curve,” Peabody President and Chief Executive Officer Glenn Kellow said in a statement. “To remain most competitive in the current environment, Peabody is implementing a number of initiatives in the operational, SG&A, financial and portfolio management areas of our business.”
Reductions also include “delayering of the organization and closing of offices in Evansville, Indiana, and Gillette, Wyoming,” according to a press release. The employee cuts embody roughly 25 percent of corporate and regional support positions.
“Any charges associated with the actions are not included in the company’s previously announced financial targets, and will be reviewed in the second quarter earnings release,” stated the press release. “In addition, the company is undertaking a review of shifts, scheduling and mine planning at operations in Australia to determine optimal production levels.”
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The newspaper will update this story as more information becomes available.
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