The Fortescue Ltd (ASX: FMG) share price is slipping into the red on Thursday morning.
At the time of writing, the iron ore giant's shares are down 1% to $22.15.
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Why is the Fortescue share price falling?
The Fortescue share price is falling this morning in response to the release of an announcement after the market close yesterday.
According to the release, Fortescue is making some big changes to support the simplification of its structure to ensure it remains lean, impactful, and agile.
One of those changes will be a significant reduction in its workforce later this month.
Fortescue advised that it "remains resolute in its commitment to be the world's leading green technology, energy and metals company" and retains its focus on achieving Real Zero by 2030.
However, as the company has undergone a period of rapid growth and transition, and as part of bringing together Metals and Energy into One Fortescue, it revealed that initiatives are being implemented to simplify its structure, remove duplication, and deliver cost efficiencies.
Management stressed that this is because it must continually evolve to ensure it remains lean, is best positioned to deliver on its strategy, and generate the maximum value for shareholders.
As part of this evolution, approximately 700 people from across Fortescue's global operations will be offered redundancies. This process is expected to be finalised by the end of July 2024.
Executive appointment
Fortescue has also announced that its acting chief financial officer, Apple Paget, will move into the role of group chief financial officer after serving 11 months acting in the role.
Fortescue notes that Paget joined Fortescue in January 2023 as group manager finance and tax and has 25 years' experience as a finance executive.
Chief corporate officer Shelley Robertson has also been appointed chief operating officer. Robertson joined the company in October and is an experienced executive with a career spanning 30 years in oil and gas, mining, and renewable energy.
Finally, Fortescue's assistant company secretary, Navdeep (Mona) Gill, has been appointed as the secretary of the company. Gill has been with Fortescue since 2021, acting as legal manager and assistant company secretary, and replaces Phil McKeiver in the role with immediate effect.
Fortescue notes that this will mean that Fortescue's board compromising almost 50% women. It also highlights that diversity will continue to be a key measure of its performance, with new targets implemented to drive diversity across the business.
The Fortescue share price is down 2.5% over the past 12 months.
