In addition, the company is undertaking a review of shifts, scheduling and mine planning at operations in Australia to determine optimal production levels.

The reductions represent about 25% of corporate and regional support positions, and the majority of reductions are expected to occur in the second quarter.

Actions also include delayering of the organisation and closing of offices in Evansville, Indiana and Gillette, Wyoming.

Any charges associated with the actions are not included in the company’s previously announced financial targets, and will be reviewed in the second quarter earnings release, according to Kellow, who has been newly appointed as CEO and who comes from Australia.

“While we regret the impact that these actions have on employees, their families and communities, today’s announcement represents another necessary step to drive the company lower on the cost curve,” he said.

“To remain most competitive in the current environment, Peabody is implementing a number of initiatives in the operational, SG&A, financial and portfolio management areas of our business.”