Kazakhmys suspends unprofitable enterprises, no layoffs expected

Kazakhstan’s Kazakhmys, a major copper producer in Kazakhstan, has suspended its unprofitable enterprises. The company explained the decision by a difficult economic situation related to low copper prices that forced the company to optimise its production processes, Tengrinews reports citing the press service of the company.

The company assured that it was not going to layoff its workers as part of the optimisation processes and promised that the workers employed at the suspended enterprises would attend retraining courses. 

“There will be no massive layoffs. The enterprises that are unprofitable at the moment will be suspended only temporarily. All the workers - there are 2,000 of them - will attend qualification upgrading and retraining courses. During this time all the employees will be receiving the average wage. After the training, we plan to employ them on at Bozshakol and Aktogai development projects. The appropriate arrangements have been made by KazMinerals company (former part of Kazakhmys Group that retained the company's major projects),” the company said.

The optimization will also affect the administrative staff of the corporation. Particularly, the performance-based premiums of a part of the administrative personnel will be cut by 10 percent. Some of the employees will also have a shorter working day. 

In case of further decline in production volumes, some of the workers might be put on enforced leave but with retain at least 50 percent of their salaries, the company said. 

“Even amid such harsh economic conditions, we are trying to carry out the optimization processes in such a way that they have a minimum (negative) effect on our workers. Social responsibility is not a meaningless word for us. We are responsible for every employee," General Director of Kazakhmys Corporation Bakhtyar Krykpyshev said.

Writing by Assel Satubaldina, editing by Tatyana Kuzmina