Australia’s Fortescue to cut about 700 jobs; appoints insider Apple Paget as CFO

(Reuters) – Fortescue will reduce about 700 jobs, or 4.5% of its global workforce, in a fresh restructuring round, the Australian miner said on Wednesday, as it appointed acting Chief Financial Officer Apple (NASDAQ:) Paget as its permanent group finance chief.

The restructuring underscores a weak outlook for iron ore prices as demand from top consumer China slows further due to its struggling property sector, although recent lacklustre economic data raises hopes for further government stimulus.

It is not clear whether the job cuts are specific to the Western Australia region or a particular division such as iron ore or green energy, but the company said the process would be finalised by the end of this month.

The miner has in recent times consolidated its metals and energy divisions into One Fortescue, as part of a strategy to “simplify its structure, remove duplication and deliver cost efficiencies.”

Meanwhile, Paget’s appointment comes at a time when the world’s fourth-largest iron ore miner is facing an exodus of senior management and billionaire owner Andrew Forest attempts to transform the company into a green energy powerhouse.

Paget, who holds around 25 years of experience as a finance executive, joined Fortescue in January last year.

Chief Corporate Officer Shelley Robertson, who has spent less than a year with the miner, will take on the role of chief operating officer, Fortescue said.

The company will report its June-quarter production report on July 25 and its full-year results on Aug. 28.