The Globe and Mail reports in its Saturday, Dec. 22, edition that Barrick Gold is making deep cuts to its Toronto head office even before its acquisition of Randgold Resources has closed. The Globe's Niall McGee writes that about 95 people, more than half of Barrick's head-office staff, have already been given layoff notices. Most of the staff have already departed and a minority will stay on until the end of February.
After the deal with Randgold was announced in September, Barrick employed about 150 people in its Toronto office. At the time, Barrick said its continuing decentralization push may result in "some work-force reduction" and any cuts were expected to be identified within 12 months of the deal closing. However, the pace of layoffs appears to be quicker than expected -- at least at the head office.
Unnamed sources say the Toronto layoffs affect finance, capital allocation, communications and investor relations. Almost the entire digital group -- about 15 people -- has been cut, sources say, and the company will now occupy only one floor in its Toronto building, as opposed to two.
Director Anthony Munk has tendered his resignation from the board, following a 22-year stint.
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