Amplats

History

2024: Thousands of jobs cut as global platinum demand collapses

On February 19, 2024, South African Amplats (Anglo American Platinum), the world's largest platinum producer, announced a restructuring. The program assumes a decrease in headcount by about 17%.

Amplats faced financial difficulties due to a sharp drop in the price of platinum group metals. This is due to the collapse in demand for relevant products in the automotive sector, as well as to macroeconomic difficulties in general. A decrease in the cost of palladium and rhodium, which are used in catalytic converters for gasoline and diesel cars, was recorded. Orders for these raw materials have declined significantly as more automakers ramp up their production of electric vehicles.

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Amplats CEO Craig Miller said the reorganization and downsizing are necessary measures to improve business sustainability and remain competitive. According to him, the decision to reduce the number of personnel "is not frivolous." The company is aware of the problems of unemployment in South Africa and the socio-economic consequences that restructuring can have on the local population. However, Amplats simply has no other option in this situation.

The layoffs are expected to affect approximately 3,700 of the company's employees. The bulk of the cuts will come from South Africa's Amandelbult site, where production fell 11% in 2023. It is assumed that one of the metallurgical plants of this complex will be mothballed. The restructuring provides for a number of other measures aimed at reducing expenses. In particular, Amplats will revise some of the terms and scope of the contracts, and some of the contracts may be terminated.^[1]

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