Gem Diamonds Could Axe 250 Jobs as Sales Plunge
July 23, 25
(IDEX Online) - Gem Diamonds today (23 July) announced a 43 per cent drop in half-yearly sales and said it may have to axe 250 jobs - a fifth of its workforce.
The UK-based miner is aiming to cut monthly costs by up to $1.6m.
It saw revenue and profits increase in FY2024, as high-value recoveries at its Letseng mine, in Lesotho, more than made up for persistent downward pressure of the diamond market.
But sales in the first six months of 2025 fell to $44.7m, compared to $77.9m for the same period in 2024.
Letseng, widely recognized as the highest dollar per carat kimberlite diamond mine in the world, also saw prices down by 26 per cent, on average, to $1,008 per carat.
Gem said in its H1 2025 trading update that it was scaling back its waste mining operations and may have to cut 250 jobs as a result of weak demand and lower prices.
"Engagement with employees and relevant stakeholders has commenced and is ongoing to ensure that the rationalisation process is managed responsibly and transparently," it said.
The company is also temporarily reducing board, executive and management salaries and may award shares in lieu, as part of its plan to reduce monthly costs by $1.4m to $1.6m.
"Considering the prolonged weakness in global diamond prices, compounded by a weak US dollar and ongoing US tariff uncertainties, Gem Diamonds has implemented decisive measures to conserve cash and protect shareholder value," it said.
"While the company has met its production targets, it has not been immune to the sustained pressure on rough diamond prices and adverse exchange rate movements."