Lonmin sacks 5,000 workers as part of restructuring

South African-focused platinum producer Lonmin’s restructuring saw more than 5,000 layoffs, a reaction to depressed commodity prices.

Some confusion prevailed over the process after the worker’s union Association of Mineworkers and Construction Union (AMCU) stated on Wednesday that only around 75 Lonmin jobs would be lost.

Lonmin stated on 3 March 2016 that most of the workers had left on a voluntary basis.

Investor’s immediate reaction was positive as the company’s share price in Johannesburg rose more than 20% and was trading almost 16% higher in London as clarity around the restructuring emerged. However, the stock could be in the over-bought zone, said analysts tracking the share price.

Source: Reuters

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