Rio Tinto (RTP Quote - Cramer on RTP - Stock Picks), one of the world's biggest mining companies, plans to cut 14,000 jobs and reduce capital expenditures to $4 billion from $9 billion in 2009 as the global economic downturn has caused sharp falls in commodity prices.
The company said its 2008 dividend will remain at the 2007 level of $1.36.
Rio Tinto said in a press release Wednesday it's committed to reduce operating costs by at least $2.5 billion a year in 2010, and has expanded its "scope of assets targeted for divestment."
Natural resource jobs have been consistent performers for the job market for the duration of this expansion:
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As the chart from the Bureau of Labor Statistics demonstrates natural resource related jobs have increased 41% since 2003, increased from 569,000 in May 2003 to 800,000 in November 2008.
But...
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Companies started cutting back on hours worked/week at the beginning of this year. When the total number of hours/week fell below 45 for the second time this year it should have become obvious problems were developing.
