Potash Corp. / To Cut Over 1,000 Jobs

Potash Corp. of Saskatchewan Inc. (POT) said Tuesday it will cut about 18% of its workforce, or more than 1,000 jobs, as it continues to grapple with slumping demand for potash and phosphate, two key fertilizer ingredients.

The Saskatoon, Saskatchewan-based company, the world\’s largest potash miner by capacity, has been hit hard by weaker prices for its major fertilizer nutrients and lower potash sales in the wake of the collapse of a Russian-Belarusian potash sales partnership in July.

Potash Corp. said most of the jobs cuts will affect its potash operations, including about 440 workers in its home province of Saskatchewan. Overall, about 570 potash jobs will be cut, with the remainder–totaling about 475–affecting its phosphate and nitrogen operations.

“Despite confidence in the long-term drivers of our business, a significant portion of fertilizer demand comes from developing markets where growth has been less robust than expected. This sluggish environment has been most visible in our potash and phosphate businesses, and has contributed to challenging market conditions,” the company said in a statement.

The company said it expects to take a charge of about $70 million for severances and may be required to take a writedown on the carrying value of its affected assets.

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via Potash Corp. to Cut Over 1,000 Jobs – WSJ.com.