The company says cost-saving measures it initially took will not be enough as it battles the unprecedented effect of the virus
ArcelorMittal SA said on Thursday that jobs at the steelmaker were on the line as the company struggles due to the effect of Covid-19 on the economy.
“A large-scale restructuring is contemplated, and the number of jobs impacted will depend on the alternatives identified and agreed to mitigate the impact. The final outcome and number of positions affected is subject to a formal consultation process,” the company said. ArcelorMittal SA said the cost-saving measures it had put in place initially will not be enough as the company battles the unprecedented effect of both the virus the associated national lockdown“Further, the company anticipates that it will take some time for crude steel production levels to return to historical levels or planned levels of 2020. Therefore, a significant part of the company’s available production capacity may remain unutilised for an extended period,” it said in a statement.
At 3.35pm, the company’s share had fallen the most in about a month, down 6.25% to 60c, while its 2020 losses amount to about 50%. The share reached its record high of R261 in 2008.
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