Barrick Gold Downsize on Gold Price Crash

Barrick Gold

(Reuters) – Toronto-based Barrick Gold is to lay off third of its corporate staff and shut developments on gold prices recent 7% drop last week.

Barrick Gold seems to face hard times as gold production costs are rising and the prices are declining. The world’s top gold mining company and bullion producer might shut down development projects and suspend exploration spending.

The largest gold mining company and top bullion producer, Barrick Gold reported unofficially that they plan to downsize up to 1/3 of its corporate staff in Toronto office and others. Jamie Sokalsky, Chief Executive of Barrick Gold, said last week at a meeting with Toronto staff that downsizing and job cuts are starting on Monday. It is the first time Barrick Gold downsize its employees in Toronto, according to Reuters sources. Reuters’ unnamed sources aren’t officially authorized to speak about the matter.

There are more than 400 staff members in Toronto offices. Barrick Gold set the beginning of job cuts on Monday and is due to complete before the weekend in Toronto. Vancouver and other offices in Canada downsizing might wait till July.

There are 25,000 employees work for Barrick Gold across the globe, in Australia, Africa and the Americas. 50 employees and their operations were announced to be cut in the U.S. last week, and few tens in Australia.

Gold price slash had its toll on gold big and small mining companies alike. Junior gold mining companies in Australia reported being sold or shut down last months. Other leading gold mining companies such as the American Newmont Mining and the Australian Newcrest Mining are doing the same. The American Newmont announced cutting its workforce by 33% over the next three months. Newcrest is planning to write down its asset by $6 billion.

Barrick Gold share lost more than half its value over the last year in the stock markets. Other mining companies report having similar losses in share prices.