In a move to simplify its operations and build value, Anglo American has suspended hiring globally, the company announced on Thursday. This comes after the London-listed miner rejected a $43 billion takeover bid from Australia’s BHP Group.
According to an internal memo reviewed by Reuters, Anglo’s People and Organisation Director Monique Carter stated that the hiring freeze is an “appropriate measure” following the company’s announcement on Tuesday to refocus its business on energy transition metal copper, while spinning out or selling its less profitable coal, nickel, diamond, and platinum businesses.
The memo said the freeze applies to “all non-site-based permanent employees and contractors across all Businesses and Group Functions,” with exceptions made for critical roles. Site-based employees, who are workers based at the company’s mines, are not subject to the freeze.
The move is seen as an effort by Anglo to prove its management team and simplify the company’s operations in the face of BHP’s takeover bid, which Anglo has rejected twice, stating that the proposals significantly undervalue the company.
“There is certainly pressure on Anglo’s management to prove themselves,” said Kaan Peker, an analyst at RBC. “Management buys themselves six to nine months or a year, then arguably you might have three interested parties at the table.”
The hiring freeze could also ultimately attract Rio Tinto, which exited the coal business in 2018, to Anglo’s pared-back company, particularly after the spin-out of its Australian metallurgical coal business.
Anglo employs around 60,000 staff globally, with slightly more than half based in South Africa, according to the company’s most recent annual report.