BHP To Slash Australian Workforce As Nickel Market Downturn Continues
Portfolio Pulse from Stjepan Kalinic
BHP Group (NYSE:BHP) is reducing its Australian workforce due to a downturn in nickel prices, driven by a supply surge from Indonesia. The company has cut a quarter of its contractor workforce at the West Musgrave project and recorded an 86% profit decline year-over-year, with a $2.5 billion writedown in its nickel business. Indonesia's policy of 'downstreaming' raw materials is contributing to the global nickel supply increase, affecting market prices.
March 18, 2024 | 3:27 pm
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BHP Group faces workforce reduction in Australia due to a significant downturn in nickel prices, influenced by increased supply from Indonesia. The company reported an 86% profit decline and a $2.5 billion writedown in its nickel business.
The reduction in workforce and significant financial writedown directly impact BHP's operational and financial health in the short term. The downturn in nickel prices, exacerbated by increased supply from Indonesia, is a critical factor affecting BHP's profitability and operational decisions.
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