Kennecott Utah Copper announced Monday it will lay off 150 employees to cut costs while copper prices are low.
Those laid off will be both salaried and hourly workers, the company said Monday.The price of copper has dropped from $1.08 to 72 cents per pound in the past year, and the price of gold, which Kennecott also mines, is at an 18-year low of $300 per ounce.
Bruce Farmer, president and chief executive officer, said the company has told employees since October that it needed to reduce costs, eliminate or defer capital spending and reduce the number of contractors and new hires.
"Regardless of these efforts, we continue to see a decline in copper prices with little relief in sight," Farmer said. " . . . Unfortunately, we must take this action to remain competitive and to better protect the company's long-term viability and look after the interest of the remaining work force."
Kennecott Utah Copper produces copper, gold, silver and molybdenum and has 2,400 Utah workers.