In response to a significant decrease in the demand for raw materials, mining company Rio Tinto is working to cut costs ? an effort that includes eliminating 14,000 employees. The layoffs (which include 8,500 contractors), among other measures, are expected to save the firm $2.5 billion annually by 2010. The urgency of the cost-cutting initiatives is furthered by the company's enormous debt obligations after acquiring Alcan last year, and a failed takeover bid from BHP Billiton. Rio Tinto may also sell assets, and plans no increases to its dividend at this time.
See "Rio Tinto Will Cut 14,000 Jobs", Bettina Wassener, The New York Times, December 9, 2008