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Toronto-based mining company Sherritt International Inc. says it’s cutting the size of its head office workforce by 25 per cent and preparing to sell its Toronto office building.
Amid tumbling commodity prices, Sherritt International Inc. has begun a major restructuring that includes cutting its workforce by 10 per cent and the sale of its head office in Toronto, which will affect one-quarter of its staff.
The downsizing and real estate sales, including the Yonge St.-Summerhill Ave. headquarters and the technology division offices in Fort Saskatchewan, are expected to save the miner $10 million annually, said chief executive David Pathe Wednesday after releasing its third-quarter earnings.
The financial results included a net loss of $51.3 million from continuing operations in the three months ended Sept. 30 compared with a profit of $1.1 million a year earlier, before Sherritt sold its coal operations in Western Canada.
“It feels like the bottom of a bear market. And what are the signposts? Layoffs are one,” said veteran mining industry analyst Barry Allan of Mackie Research Capital Corp.
Nickel futures in London have fallen about 17 per cent in the past three months and base metal miners like Sherritt have been struggling amid over-supply and weaker demand from China.
The company said it expects to recognize a $9-million, one-time expense related to the restructuring in the fourth quarter.
Excluding its key Ambatovy nickel and cobalt mine in Madagascar, there will be 60 salaried staff cut worldwide at Sherritt, whose operations are mainly outside of Canada at mining and oil and gas operations in Africa and Cuba.
That includes 18 white collar workers in the Toronto head office, which is being relocated to an undisclosed rented space downtown, a spokesperson said.
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