Mining tycoon Andrew “Twiggy” Forrest stands by his green hydrogen plan after his decision to cut hundreds of jobs raised doubts about the direction of the Fortescue Group.
The iron ore miner-turned-energy company announced 700 job cuts in a restructuring on Wednesday, saying it would ensure the company remains “lean, efficient and agile.”
Speaking on air Thursday, Forrest explained the move and assured investors that he remains committed to a green energy future.
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“We’re not backing down, that’s something I really believe in,” he told Perth radio station 6PR. “I’m a hardcore bush guy, I’m a miner, I’m a practical person, and I was fortunate to have an education in Australia, so I looked seriously at the science.”
“I know that continuing the path we are on with fossil fuels is not an option, as the climate is changing dramatically around us.
It was interpreted as “Twiggy backing off hydrogen.”
“Twiggy will not back down from hydrogen. The world needs hydrogen. All we have to do is figure out how to produce it cheaply.”
“broken like a fish”
The billionaire philanthropist said uncertainty caused by wars in Ukraine and Gaza and high costs made the operating environment difficult.
“We need lower energy prices, and hydrogen is a direct function of the cost of electricity – if the cost of electricity is high, we won’t be able to produce hydrogen cheaply enough to compete with fossil fuels,” he said.
He said 700 jobs had been cut to reduce duplication of roles across the company and cut costs.
These changes included office functions in local communities, human resources and government relations departments, Forrest said.
“I’m a guy who really likes to simplify things to keep things flowing,” he said.
“Our organization has been simplified to one layer, from having management layers everywhere, to three layers.”
He said losing his job left him “broken like a fish with a dull knife, my friend.”
“We have about 15,000 employees… and 5,000 contractors. We laid off 700 people. I hate doing that.”
