**Newmont Corp. Plans Cost-Cutting Measures Amid Rising Expenses**
Newmont Corp., the largest gold mining company globally, is exploring strategies to reduce costs, which may result in significant job reductions following its $15 billion acquisition of Newcrest Mining Ltd. in 2023. The acquisition expanded Newmont’s portfolio to approximately 20 mines and marked its entry into copper mining, leading to a surge in operational costs.
In early 2025, Newmont’s all-in sustaining costs per ounce—a critical metric for gold miners—reached an unprecedented high, diminishing profits despite record gold prices. To align more closely with its lowest-cost competitors, Newmont has engaged the Boston Consulting Group to assist in developing a cost-reduction plan. Sources indicate that the company aims to lower costs by as much as $300 per ounce, approximately 20%, although specific job cut numbers remain unspecified. This could potentially involve thousands of layoffs, as Newmont employed around 22,000 individuals at the end of December, excluding contractors.
The company has begun notifying some employees about potential redundancies, and discussions regarding job cuts and other cost-saving measures, including the possibility of reducing long-term incentives, have taken place between executives and division managers. While the cost-reduction strategy is still being finalized, its implementation remains uncertain.
A Newmont spokesperson confirmed the initiation of a cost and productivity improvement program in February, highlighting that restructuring is part of broader efforts to lower the company’s cost base this year. The gold mining sector has benefited from soaring bullion prices, with gold reaching an all-time high of approximately $3,500 an ounce in April and maintaining levels above $3,300 since then. This surge has led to a significant increase in gold equities, with Newmont’s stock rising 95% this year.
However, Newmont’s all-in sustaining costs have escalated over 50% in the past five years, driven by rising energy, labor, and material costs. In the second quarter, these costs were nearly 25% higher than those of Agnico Eagle Mines Ltd., a competitor recognized for its low-cost production. Although Newmont stated that its costs are within the guidance range for the year, an increase is anticipated in the latter half.
CEO Tom Palmer has indicated that the company is actively seeking further improvements to its cost structure, particularly addressing challenges stemming from the Newcrest acquisition. Ongoing cost issues have been reported at its Lihir operation in Papua New Guinea and the Cadia mine in Australia.
**FAQ**
**What are Newmont Corp.’s plans for cost reduction?**
Newmont Corp. is considering significant cost-cutting measures, which may include job reductions, to align its expenses with those of its lowest-cost competitors following a recent acquisition that increased its operational costs.