Newmont Corporation (NYSE:NEM), the world’s largest gold producer, is reported to be evaluating significant cost-cutting measures that could result in thousands of job losses.
The review follows its $15 billion acquisition of Newcrest Mining Ltd. in 2023, which expanded its portfolio to about 20 mines and increased exposure to copper.
The gold miner has faced surging costs since the deal, with its all-in sustaining costs (AISC) per ounce, a key industry benchmark, hitting a record high earlier in 2025.
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While gold prices have reached historic levels, boosting Newmont shares by 95% this year, elevated operating costs have weighed on profit margins.
Citing people familiar with the matter, Bloomberg noted that Newmont is targeting cost reductions of as much as $300 per ounce, or roughly 20%, to align with low-cost peers such as Agnico Eagle Mines Ltd (NYSE:AEM). Achieving that goal could require substantial workforce reductions.
Some staff have already been informed about potential redundancies.
The company executives have been holding discussions with division managers over recent weeks to outline plans, which may also include scaling back long-term incentives.
A spokesperson confirmed to Bloomberg that Newmont launched a cost and productivity improvement initiative in February, describing organizational changes as part of a broader effort to streamline operations.
In April, Newmont concluded its portfolio optimization initiative. The year-long process, initiated after the Newcrest merger, ended with the sales of its Akyem mine in Ghana and the Porcupine operation in Canada.
The cost surge is partly tied to Newcrest assets such as Papua New Guinea’s Lihir mine and Australia’s Cadia operation, both of which have struggled with rising expenses.
Over the past five years, Newmont’s AISC has increased more than 50%, fueled by higher energy, labor, and material costs. Its second-quarter AISC was about 25% higher than Agnico Eagle’s, underlining the competitiveness gap.
Despite its cost challenges, Newmont has benefited from gold’s historic rally, with prices peaking at around $3,500 an ounce in April and mainly holding above $3,300 since.
Newmont reported quarterly earnings of $1.43 per share, which beat the analyst estimate of $1.12. Quarterly revenue came in at $5.31 billion, which beat the analyst consensus estimate of $4.93 billion and is up from $4.4 billion in the prior year’s quarter.
The company has signaled that costs remain within its guidance for 2025 but expects further inflationary pressure in the year’s second half.
Price Action: NEM stock is trading lower by 1.10% to $71.63 at last check Wednesday.
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