Jordan Phosphate Mines Company’s net losses surged to JD128 million in 2000, against JD21 million the year before, intensifying the need for comprehensive restructuring if the firm is to survive, according to JPMC officials quoted in the Jordan Times.
The company blamed the losses on the higher-than-expected cost of its early retirement program, allocations to write off losses, and provisions for machinery and debts, said the daily.
The firm also blamed the results on fierce competition in international markets, high production costs, a decline in prices, and lower market demand.
Faced with a dismal performance, the company last year launched a five-year restructuring strategy to boost its production and improve its marketing strategy.
According to the paper, JPMC's annual report reveals that the retirement program, which is aimed at downsizing the firm's bloated workforce, will eventually affect 1,300 employees and cost around JD51 million.
“We didn't think that the cost of the program would be of such a size, which was only revealed following the actuarial study,” JPMC board chairman Safwan Toukan told the Jordan Times.
He told the general assembly that employees still eligible for the retirement program number around 300 – Albawaba.com
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