Fortescue to cut hundreds of jobs in Australia and UK as green strategy pivots

Fortescue is cutting hundreds of jobs across its green energy arm, Fortescue Zero, in a major operational shake-up that reflects both cost pressures and a change in direction for its renewable ambitions.

The mining giant confirmed that it will reduce headcount in the United Kingdom and Australia while offshoring parts of its work to China and Germany. The decision marks a significant pullback from earlier plans to build renewable batteries in-house for its mining fleet.

The Fortescue Zero division, which employs more than 1,100 people globally, will now focus primarily on research and design from its Oxfordshire base. Manufacturing, meanwhile, will move overseas, a move that founder Andrew Forrest said was necessary to stay competitive on speed and cost.

“It’s senseless to compete with the Chinese,” Forrest told The Telegraph, acknowledging that most battery components will now be sourced from China and Germany.

Gus Pichot, Fortescue’s Chief Executive of Growth and Energy, said the restructuring was a “disciplined and collaborative” effort to keep the company at the forefront of innovation. “Regrettably, these changes are likely to impact some of our workforce… Fortescue is dedicated to guiding the transition with compassion, respect and support,” he noted.

The latest cuts follow earlier layoffs and the cancellation of two major hydrogen projects in the United States and Australia earlier this year, resulting in a US$150 million write-down.

For HR and business leaders in the ANZ region, Fortescue’s pullback highlights a much bigger headache: how do you square your ambitious sustainability goals with harsh economic realities? As companies worldwide focus intensely on cutting costs and boosting efficiency, handling the human side of these job transitions will be absolutely crucial for holding onto trust and morale across the entire workforce.