ST. LOUIS, June 8, 2015 /PRNewswire/ -- Peabody Energy
(NYSE: BTU) President and Chief Executive Officer Glenn Kellow today announced plans to reduce
approximately 250 corporate and regional positions in coming months
to create a leaner organization and lower costs. When fully
implemented later this year, these reductions are expected to save
$40 million to $45 million
per year.
"While we regret the impact that these actions have on
employees, their families and communities, today's announcement
represents another necessary step to drive the company lower on the
cost curve," said Kellow. "To remain most competitive in the
current environment, Peabody is implementing a number of
initiatives in the operational, SG&A, financial and portfolio
management areas of our business."
The reductions represent approximately 25 percent of corporate
and regional support positions, and the majority of reductions are
expected to occur in the second quarter. Actions also include
delayering of the organization and closing of offices in
Evansville, Indiana and
Gillette, Wyoming. Any charges
associated with the actions are not included in the company's
previously announced financial targets, and will be reviewed in the
second quarter earnings release.
In addition, the company is undertaking a review of shifts,
scheduling and mine planning at operations in Australia to determine optimal production
levels.
Peabody Energy is the world's largest private-sector coal
company and a global leader in sustainable mining, energy access
and clean coal solutions. The company serves metallurgical and
thermal coal customers in more than 25 countries on six continents.
For further information, visit PeabodyEnergy.com and
AdvancedEnergyForLife.com.
CONTACT:
Vic Svec
(314) 342-7768
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SOURCE Peabody Energy