This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
About 200 Kennecott employees lost their jobs Thursday, victims of the global collapse in the prices of copper, gold and other commodities mined by the company.
Rio Tinto Kennecott spokesman Kyle Bennett said the cuts occurred across the company's Utah operation, impacting both hourly and salaried workers.
"It's a difficult day for sure," he said. "As a business, you understand the real impacts it has on the individuals leaving the business and their families — and the people left behind."
Bennett said the reductions are permanent. Laid-off employees will receive severance packages and assistance to find a job outside of the company, which still has 1,620 employees.
"These changes are necessary to ensure our business stays strong," said Rio Tinto Kennecott Managing Director Nigel Steward, "to preserve our future and to continue contributing to the state's economy during this challenging time to our industry."
Salt Lake County Mayor Ben McAdams said "it is difficult to learn that 200 hard-working people will be laid off. …My hope is that Kennecott will soon be able to restore workforce levels. Until that time, Salt Lake County will do what we can to support those who are now facing this hardship, through applicable programs."
Bennett said the cuts are localized, rather than part of layoffs throughout Rio Tinto's global reach, and that employees were notified Thursday.
"We're going to focus on safety, efficiency and reducing our costs," he said, adding "we've done everything we could to reduce the number of people cut. We cut several hundred million dollars in expenses reducing inventory, renegotiating contracts and instituting a salary freeze across the business."
"But we still had to make this difficult decision today. It's important for us to be a long-term contributor to the economy."
Utah AFL-CIO President Dale Cox said he understood the layoffs did not hit unionized workers, but he still felt bad for the "salaried men and women. It's tragic for them and their families.
"Our people are still working, but it hurts the [Kennecott] family," he added. "It's a sign of the times with the way trade is. Copper is down and Kennecott has to make cuts where they can. It's not a good sign."