August 2025 — Mining and trading giant Glencore Plc has announced plans to cut $1 billion in costs across its global operations by 2026, while also raising its long-term profit forecast for its commodity trading business for the first time in eight years.
The move follows a comprehensive internal review of Glencore’s extensive portfolio of mines and smelters, aimed at simplifying operations and enhancing efficiency amid sustained pressure from declining coal and metal prices.
“We’ve identified opportunities to streamline our industrial operating structure, optimize management, and sharpen our technical and operational focus,” said CEO Gary Nagle in a statement.
Trading Unit Sees Long-Awaited Upgrade
Glencore raised its annual profit guidance for its marketing and trading unit to between $2.3 billion and $3.5 billion, up from the long-held range of $2.2 billion to $3.2 billion. The unit earned $1.35 billion in the first half of 2025 alone, despite a broader market cooldown.
The revision comes after years of investor questions about why Glencore hadn’t updated the range—especially as trading profits repeatedly exceeded forecasts during periods of extreme volatility, including the COVID-19 pandemic and the Russia-Ukraine war.
Glencore cited growth in metals and energy trading, expansion into new areas like lithium and liquefied natural gas (LNG), and “inflationary progression” as key drivers for the new guidance.
“This brings Glencore in line with peers like Trafigura, which earlier this year declared its trading unit had reached a ‘new cruising altitude,’ well above pre-pandemic levels,” one analyst noted.
Industry-Wide Belt-Tightening
The cost-cutting announcement reflects a broader trend in the mining sector, where companies are scaling back amid sluggish commodity prices, especially in coal and iron ore. Anglo American Plc and Rio Tinto are also actively trimming costs and simplifying their operations to protect margins.
Although Glencore has faced growing pressure from environmental and institutional investors to exit coal, the company has scrapped earlier plans to divest from the fossil fuel, signaling it still sees value in coal despite mounting ESG scrutiny.
The company said more details on its cost-cutting strategy will be disclosed during its financial results presentation next week.
