Peabody Plans To Reduce About 250 Salaried Positions

(RTTNews) - Coal producer Peabody Energy (BTU) on Monday said it plans to reduce about 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, Peabody CEO Glenn Kellow.

The reductions represent about 25 percent of corporate and regional support positions, and the majority of reductions are expected to occur in the second quarter.

"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."

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.

Peabody also said it is undertaking a review of shifts, scheduling and mine planning at operations in Australia to determine optimal production levels.