BHP to streamline operations, cut jobs amid restructure
Resources giant BHP has unveiled a sprawling restructure of its global operations that is likely to result in some job losses in Australia.
Resources giant BHP has unveiled a sprawling restructure of its global operations that is likely to result in some job losses in Australia.
BHP will merge some operations, remove some layers of management and consolidate other duties as part of the restructure that aims to simplify its global business.
In a document seen by The Australian, BHP said it had reviewed its operating model “to identify what is serving us very well, and where there is a case to evolve our approach”.
“The review has focused on understanding and responding to where our work has changed through time, new expectations, requirements, or external interfaces,” the company said.
“It is about simplifying how we work in recognition of the capabilities we have invested in, and in empowering our people through greater accountability.”
The restructure would see some national operations transferred to state-based teams based around particular commodities. “In the main, we found that our operating model continues to be a source of competitive advantage,” BHP said.
“We also found an opportunity to adjust some of our processes, authorities, and organisational structures.”
It is not clear how many jobs will go in the revamp.
“As part of our continuous improvement in how we approach our work, we have made some changes to better align work activities within assets and support quicker decision making,” said a BHP spokesman.
The restructure comes a week after BHP flagged it was considering putting its nickel division into care and maintenance, and halting the construction of the West Musgrave nickel mine acquired with the company’s takeover of OZ Minerals last year.
BHP chief executive Mike Henry said the company needed to be confident Nickel West could compete with the flood of new supply from Indonesia without the aid of subsidies.
BHP was pushed close to a headline loss for the December half. Underlying profit of $US6.6bn profit was flat on this time last year and hit market expectations – only just.
The downshift in the commodity cycle from the pandemic boomtime backed a 20 per cent drop in interim dividends to US72c.
Under the changes, health, safety and environment, planning and technical operations will be transferred to two new teams – health, safety and security (HSS) and planning, technical and environment (PTE).
The new PTE teams in each region will be responsible for work related to environment, heritage, water, rehabilitation, studies and related planning and approvals.
Maintenance planning and scheduling operations warehousing and logistics also will be transferred to regional teams.
BHP shares closed 9c lower on Wednesday at $43.95. Its shares are now down 3.5 per cent since February 2020.
Citi analysts noted that BHP expected the lagged impacts from the inflation peak observed last financial year, as well as continued labour market tightness, to impact cost base throughout the remainder of the financial year.
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