Key facts
- Codelco's restructuring plan may be delayed until the end of 2026.
- The plan was originally expected in October.
- Sources suggest potential workforce reductions of 5% to 20%.
- New CEO Jorge Gomez joined Codelco in July.
- Chile's unemployment rate hit 9.5% in July.
Chilean state-owned copper giant Codelco's much-anticipated restructuring plan, aimed at addressing years of stagnant production and mounting costs, may not be ready until the end of 2026, the company told Reuters. The turnaround strategy was originally expected in October.
Sources familiar with the matter indicated that the plan could entail a workforce reduction of between 5% and 20%, though Codelco stated it was too early to speculate on such decisions. The company is currently undergoing a diagnostic process to determine its strategic direction and develop a recovery plan, which is expected to be finalized by the end of 2026. New CEO Jorge Gomez, who joined in July, is reportedly seeking to apply a similar stabilization strategy to that which he implemented at the Collahuasi mine.
Any significant restructuring at Codelco, Chile's largest company, would have broad implications for the national economy, which heavily relies on mining. The potential job cuts could also run counter to President Jose Antonio Kast's pledge to lower unemployment. The company's unions, grouped under the Copper Workers Federation (FTC), have stated they have not been formally informed of any headcount reduction plans and argue current staffing levels are aligned with operational needs.