Chile’s Codelco Delays Major Restructuring Plan as Copper Giant Reviews Costs

Santiago, September 17, 2026: Chilean state-owned copper producer Codelco has indicated that its long-awaited restructuring strategy may not be ready until the end of 2026, later than the company’s previously expected October timetable. The review is intended to address years of stagnant production and rising operating costs.

Codelco said its new management is currently carrying out a detailed assessment of the company’s operations and developing a recovery strategy. The company emphasized that no final decisions have been made regarding potential workforce reductions.

The restructuring has attracted considerable attention because Codelco is Chile’s largest company and one of the world’s major copper producers. Copper exports play an important role in Chile’s economy, making changes at the state mining company relevant to the country’s broader economic outlook.

Several people familiar with the company’s operations have suggested that the review could eventually involve a reduction in the workforce. Estimates mentioned in reports range from 5% to 20%, although Codelco has stressed that it is too early to confirm any specific figure.

The company currently has a workforce of roughly 77,000 people, including a large number of contractors. Sources cited by Reuters said contractors could be particularly affected if Codelco decides to reduce staffing or postpone less profitable projects.

Codelco’s production outlook is another major issue. Previous plans had targeted production of around 1.7 million metric tons, but company officials have indicated that output could remain closer to 1.3 million metric tons in the coming years.

The restructuring review comes at a difficult time for Chile’s labour market. The country’s unemployment rate reached 9.5% in July, its highest level since the pandemic period in 2021, according to the Reuters report. Any significant employment changes at Codelco could therefore receive considerable attention from workers, unions and policymakers.

Codelco’s unions have said they have not been formally informed of a plan for large-scale layoffs. Union representatives have argued that any changes to staffing should be based on operational requirements rather than broad reductions.

The company’s new chief executive, Jorge Gomez, joined Codelco in July and is leading the current assessment. Before taking the position, Gomez had experience managing production and operational challenges in the mining sector.

Codelco’s final restructuring strategy is now expected later in 2026. Until the review is completed, the company has not confirmed the scale of possible job changes or which operations could be affected.

The outcome will be closely watched because Codelco’s performance affects not only Chile’s mining industry but also employment, government revenues and the country’s position in the global copper market.