UPDATE 1-Gold miner Iamgold to shrink executive ranks by nearly half

Mon Nov 10, 2014 5:41pm EST
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(Adds more cost-cutting plans, context)

Nov 10 (Reuters) - Iamgold Corp said on Monday it is shrinking its executive team by 40 percent and taking other cost-cutting steps as the mid-sized gold miner and its peers reel from a 40 percent slump in the price of bullion over the past three years.

Toronto-based Iamgold, which is among the highest-cost gold producers in the world, said that three senior vice-presidents, including its heads of project and corporate development, will be leaving the company.

It is also withdrawing from the World Gold Council as it reduces its corporate memberships to save money.

Iamgold is not alone in taking drastic steps to reduce its costs. Struggling gold producers around the world are planning increasingly tough measures such as scrapping dividends, cutting jobs, halting projects and shutting mines to survive the latest price plunge.

Iamgold said it is targeting a 10 percent reduction in corporate general and administrative costs in 2015 as well as productivity and cost reduction initiatives at its Rosebel mine in Suriname and its Essakane mine in Mali.

"We are determined to make this company a stronger competitor in the gold industry ...," Iamgold President and Chief Executive Steve Letwin said.

The company's chief operating officer, Gordon Stothart, chief financial officer Carol Banducci, and senior vice-president of exploration Craig MacDougall will remain with the company.

Work on major expansion and development projects will be considerably reduced, Iamgold said, and third-party design and engineering teams will be used when needed. (Reporting by Nicole Mordant in Vancouver; editing by Andrew Hay)