Vale Metais Básicos, a subsidiary of Vale, will fire dozens of managers to simplify its corporate structure and improve performance, according to people familiar with the matter.
The layoffs are part of an effort to streamline the Toronto-based company’s organization and give greater decision-making power to operational teams, said one of the people, who asked not to be identified due to the internal nature of the discussions.
Vale Metais Básicos did not provide comments, while emails and calls to its headquarters were not promptly answered.
The measure marks the first major restructuring since Shaun Usmar took over as executive director of Vale Metais Básicos, in October. The industry veteran came into the role with the aim of improving production and reducing costs across the company’s nickel and copper asset division in Canada, Brazil and Indonesia.
“We cannot spend our way to prosperity,” Usmar told shareholders on Tuesday at Vale’s investor event in New York. “We have to be as lean and cost-focused as possible to realize the potential.”
Vale Metais Básicos has informed some employees, as well as one of the unions representing workers at its Canadian nickel assets, about a “management reorganization” this month, according to Raymond Hammond, vice president of United Steelworkers Local 6500, which represents workers. of Vale in Ontario.
“We have been informed that there is a management reorganization that will involve layoffs at the senior level,” said Hammond, who added that members of the steel workers union are not affected.
