Rio Tinto boss pushes cost cuts with jobs in focus

Rio Tinto (ASX, NYSE, LSE: RIO) CEO Simon Trott said on Wednesday he will continue to streamline the company’s global operations with the goal of reaching billions of dollars in cost savings, asset sales and productivity gains.

Trott declined to comment on the scale or timing of any layoffs, which some reports have estimated could be as much as 20% of its white-collar workforce at its Perth headquarters. The CEO reiterated a target to unlock $5-$10 billion from the company’s asset base through divestments and operational efficiencies after delivering $650 million in productivity benefits since he took over last August.

The mining giant has already reorganized into three divisions — Iron Ore, Aluminium & Lithium, and Copper as as part of a broader effort to simplify management and improve accountability.

“Last year, we outlined a plan to really drive decision-making as close to the point of impact as we could,” he told reporters after the company annual meeting in Perth. “And that’s about having a stronger company. That’s about having a simpler company, reducing complexity, being really clear around where accountabilities lie, and making sure that people are where the decisions are made.”

‘Winning formula’

Trott and Rio Tinto chairman Dominic Barton used the AGM to defend the company’s diversified mining strategy, calling it “winning formula” for growth and returns as geopolitical tensions and supply chain fragmentation reshape commodity markets.

Rio’s exposure to iron ore, lithium, aluminium and copper positioned the company to benefit from long-term demand tied to electrification and energy security, Trott said.

“I believe in the diversified model and we’ve got a fantastic iron ore business,” he said. “We’ve brought on lithium, and we’ve got some amazing assets and development assets in lithium, aluminium and copper. When you take those together across the three product groups that we really want to focus on, we think that positions us really well for the future.”

 

 

Rio Tinto was still assessing how geopolitical uncertainty could affect commodity demand and customer behaviour, Trott said.

Barton noted growing de-globalization and supply chain disruption were increasing competition for mined materials and reinforcing long-term demand.

“I don’t know if we’re close to a world war, but I definitely think the complexity, the intensity of the changes, fragmentation – it’s got to be at a 50 or 60-year high,” he said. “The fragmentation and the fact that everyone wants materials for their own place totally affects the supply chain, which means we have more demand, and it’s still hard to put these online.”

Rio Tinto’s restructuring mirrors a wider push across the mining industry to cut costs, simplify corporate structures and increase exposure to metals tied to the energy transition as producers navigate volatile markets and rising geopolitical risk.

Shares in Rio Tinto gained 2.3% on Wednesday to close at A$174.60 apiece, valuing the company at A$245 billion (US$177 billion).