Dr Andrew Forrest tells workers 700 jobs will be cut at Fortescue

Mining magnate Andrew Forrest has reportedly told staff that 700 jobs will be slashed as his company gets set to restructure.

Mining magnate Andrew Forrest’s Fortescue is expected to axe up to 700 jobs as the company gets set to restructure and merge its mining and energy divisions.

The executive chairman reportedly told 16,000 Fortescue staff on Wednesday about the cuts.

Those facing the chopping block will include more of the company’s senior management, according to The Australian.

The decision comes after the mining company now sets its sights on producing cheap renewable energy at scale.

Dr Andrew Forrest has announced 700 jobs will be cut at Fortescue. Picture NewsWire / Sharon Smith

The company’s about turn means its goal of producing 15 million tonnes of green hydrogen a year by 2030 is unlikely to be achieved.

Dr Forrest previously claimed the ambitious plan would eventually be bigger than Saudi Energy giant Aramco.

In a statement to the Australian Stock Exchange, Fortescue (FMG) said the restructure meant the Perth-based mining company was implementing “initiatives” that will “simplify its structure, remove duplication and deliver cost efficiencies”.

“The Company must continually evolve to ensure it remains lean, is best positioned to deliver on its strategy and generate the maximum value for shareholders,” the statement read.

“As part of this, approximately 700 people from across Fortescue’s global operations will be offered redundancies, with that process to be finalised by the end of July 2024.

“Fortescue is grateful for the contribution of all those impacted by these changes.”

Fortescue said it remained “resolute in its commitment to be the world’s leading green technology, energy and metals company with a laser focus on achieving Real Zero by 2030”.

“The company has undergone a period of rapid growth and transition, and as part of bringing together Metals and Energy into One Fortescue, initiatives are being implemented to simplify its structure, remove duplication and deliver cost efficiencies,” Fortescue said.

The Perth-based mining company will face a major restructure. Picture: Brendon Thorne/Bloomberg via Getty Images

Dr Forrest also issued separate statement on Wednesday, stating the company was committed to achieving its decarbonisation goals by 2030.

Dr Forrest told the ABC: “without change, improvement is impossible”.

“Being a first mover isn’t easy, but as we learnt 21 years ago, risk is always worth the reward,” he said.

“Part of the reason Fortescue is the highest performing company on Australia’s Stock Exchange is that we do things differently.

“We do not apologise for requesting people leave their corporate culture behind when they join us … nor will we apologise when we don’t look like everyone else.”

Fortescue also confirmed it had appointed acting chief financial officer Apple Paget to the role on a permanent basis.

Chief corporate officer Shelley Robertson has also changed roles to now fill the position of chief operating officer.