Sesa Sterlite planning to cut 1,000 jobs

Sesa Sterlite planning to cut 1,000 jobs

Sesa Sterlite Ltd, India's leading iron ore exporter until it was banned from mining in Goa around months back, is now planning to cut jobs to cope with escalating costs.

The miner on Tuesday announced that it might have to eliminate 40 per cent of its workforce or 1,000 of its 2,500 workers, if the court put a limit on the amount of ore it can mine in the state.

Prasun Kumar Mukherjee, executive director for iron ore business at Sesa Sterlite Ltd, confirmed that the company was looking critically at all fixed costs and planning to layoff nearly one thousand workers.

Announcing the plan, Mr. Mukherjee said, "We're looking critically at all fixed costs. So far we haven't cut a single penny from staff salaries, but now we have to take this difficult decision."

A labour ministry order last month restrained the miner from cutting the jobs, but the company is now planning to petition the court to overturn that order.

Sesa Sterlite is a unit of billionaire Anil Agarwal-led Vedanta Resources. It was banned from mining in Goa in September 2012 after the company was found involved in illegal mining.

Shares of Sesa Sterlite slipped as much as 3.2 per cent to Rs 178 apiece in Morning session trade on the Bombay Stock Exchange. The stock has lost nearly 12 per cent of its market value so far this year.

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