SPECIAL REPORT The Top 7 Stocks for 2024

Sibanye Stillwater Layoffs 2023: What to Know About the Latest SBSW Job Cuts


  • South Africa-based mining company Sibanye Stillwater (SBSW) will lay off nearly 300 employees in its U.S. platinum unit.
  • Last month, the firm announced a much larger round of potential layoffs.
  • Earlier in November, Sibanye also disclosed its acquisition of a U.S. metals recycling company.
Sibanye Stillwater layoffs - Sibanye Stillwater Layoffs 2023: What to Know About the Latest SBSW Job Cuts

Source: Phawat / Shutterstock.com

South Africa-based mining company Sibanye Stillwater (NYSE:SBSW) just announced that it will eliminate nearly 300 jobs from its U.S. division as it restructures its platinum group metals (PGM) business. Apparently, the unit is encountering problems due to a decline in palladium prices. In the wake of the Sibanye Stillwater layoffs, SBSW stock is retreating about 2% today.

Sibanye blamed reduced metals prices for the layoffs. The workforce reduction move will reportedly affect 100 company employees and 187 contractors.

SBSW Stock: Reasons for the Sibanye Stillwater Layoffs

PGM prices have tumbled since the end of 2022 due to worries about the macroeconomic outlook. PGMs, including palladium, are primarily incorporated in vehicles as a means of reducing their emissions. Amid the economic slowdown in China, palladium prices specifically are down “nearly 40% so far this year.” Meanwhile, platinum has retreated 14% in 2023.

With that said, the Sibanye Stillwater layoffs are not expected to meaningfully lower Sibanye’s production of platinum or palladium.

“We have taken decisive action to address costs at the U.S PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower than anticipated PGM prices,” said CEO Neal Froneman.

What Else Should Investors Know?

Back in late October, Sibanye Stillwater reported that it could lay off more than 4,000 employees involved in its PGM business in South Africa. Since the firm announced those potential Sibanye Stillwater layoffs, shares of SBSW stock have retreated roughly 7%.

Earlier this month, however, Sibanye also disclosed that it would purchase U.S. metals recycler Reldan for $211 million. After announcing the acquisition, Sibanye noted that it would look to sell $500 million of convertible bonds. Last year, Reldan generated $28 million of free cash flow.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/sibanye-stillwater-layoffs-2023-what-to-know-about-the-latest-sbsw-job-cuts/.

©2024 InvestorPlace Media, LLC