Global steel giant ArcelorMittal has announced a $1-billion fixed cost-reduction programme under which the company would be reducing 20 per cent of its corporate office employees by 2022.

ArcelorMittal is the world’s leading steel and mining company, with presence in 60 countries and steel making facilities in 17 countries. It employs around 190,000 people.

In an update for the October-December quarter of 2020 and full year 2020, ArcelorMittal said the $1-billion structural fixed cost-reduction plan aims to maintain competitiveness in the post Covid-19 environment. The plan includes 20 per cent reduction in corporate office headcount, reducing contactors, reallocation of resources etc, the company said.

At the onset of the pandemic, a fundamental part of the company’s response was to align costs to the lower activity level. The measures taken to “variabilise” fixed costs were critical to protecting profitability and cash flows. Throughout this period, the company sought to identify and develop options for structural cost improvements to appropriately position the fixed cost base for the post-Covid operating environment.