Cemex to cut workforce by 6%

Cemex to cut workforce by 6%
Published: 09 June 2011

Cemex’s proposed 6% reduction of its workforce will have a "solid" effect on the company’s recovery, Carlos Hermosillo, a sector analyst with Grupo Financiero Banorte, told BNamericas.

Cemex will reduce its global workforce by 6% as part of a global restructuring program announced in April, Reuters reported.

While the cement firm has not revealed the exact saving to be generated by the redundancies, the staff reduction is a "significant part of the company’s plan to increase its operating cash flow by US$400mn," said Hermosillo.

Cemex, Mexico’s largest cement producer, has struggled to pay back debt since its acquisition of Rinker in 2007. The company reported total debt of US$17.1bn at end-1Q.

"Cemex’s recovery depends on improvement in the US market but this has not yet happened. This year will be complicated for Cemex," Hermosillo said.