Replies to post #811 on IAMGOLD Corp (IAG)

[JohnCM]

IAMGOLD reduced its senior management team by 40% and take other measures to reduce costs

Today: Monday 10 November 2014

TORONTO on Nov 10, 2014. / CNW / - IAMGOLD Corporation ("IAMGOLD" or the "Company") today announced that as part of its ongoing efforts to maximize economic performance, the Company changed the structure its organizational headquarters for the primary purpose of creating a more effective and efficient business that embodies the flexibility and scalability by adopting leading practices.

As part of this process, the Company conducted a study based on interviews conducted in all of its offices in Toronto ( Ontario ) and Longueuil (Quebec). A closer examination of the development group project was also part of this study. In this review, the existing organizational structure of the Company was compared with benchmarks of best practices, and numerous external sources and previous internal studies were considered.

Steve Letwin , President and CEO, IAMGOLD said: "We are determined to ensure that this company will become a stronger competitor in the gold industry and enrich the lives of all our stakeholders: investors , employees, business partners and the countries and communities in which we operate. As a first step, we have reorganized the structure of the headquarters of IAMGOLD to guide the transformation of the Company. We have also taken steps to strengthen the statement of financial position and improve our liquidity as a result of significant reductions in cost, disciplined capital management and sale of Niobec. "

Aware of the difficulties a context of price of gold down and eager to strengthen its culture of continuous improvement in order to become more effective and efficient, IAMGOLD has restructured its senior management team. The new structure of the headquarters will be composed of the following executives who all report directly to Steve Letwin :

Gordon Stothart , Executive Vice President and Chief Operating Officer
Carol Banducci , Senior Vice President and Chief Financial Officer
Benjamin Little , Senior Vice President, Corporate Affairs, People and Safety
Craig MacDougall , Senior Vice President, Exploration
Jeffery Snow , Director, Legal Affairs and SVP, Business Development
These changes will reduce 40% of the senior management team, as the following three senior officers, after many years of service, leave the company to pursue other interests:

Robert Carreau , Senior Vice President, Health, Safety and Sustainability
Denis Miville-Deschenes, Senior Vice President, Project Development
Paul Olmsted , Senior Vice President, Business Development
"Each of these three great leaders has made valuable contributions to IAMGOLD, says Letwin. On behalf of the Board and all stakeholders of the Company, I thank them for their many years of service and wish them my best wishes. "

These changes follow the departure in September of Lisa Zangari , SVP, Human Resources, who left the Company to occupy a similar position in the technology sector. Now, information technology will report to Carol Banducci . Benjamin Little assume responsibility for human resources and health, safety and sustainability, Jeffery Snow now lead the business development and Gordon Stothart continue to oversee the development of projects.

As part of its regular review of the projects, IAMGOLD assesses the prospects of gold prices, economic performance and other key success criteria for each existing or planned projects. At the most recent evaluation, company decided that with the exception of selected studies with critical deadlines, work on major projects for expansion and development will be significantly reduced.

Therefore, IAMGOLD now adopts a different model projects for its development group projects and engage the services of external design teams and engineering as required. While this is necessary, it is with great regret that the Company has decided to remove the majority of the team project development, and, as of now. The project team and technical services now report directly to Gord Stothart.

Along with these changes, IAMGOLD has undertaken additional initiatives to reduce costs in addition to those of $ 125 million achieved in 2013. The company aims to reduce 10% of all its general and administrative expenses of the 2015 budget as well as 'to achieve productivity initiatives and cost reduction Rosebel and Essakane mines. With respect to the focus on costs, the Company decided to reduce a number of affiliations, including withdrawing from the World Gold Council (WGC). While the Company recognizes the excellent work done by the WGC and thank him for his efforts to promote gold, in the current context, it is necessary to make difficult choices and focus on the essential elements of how the company.

"IAMGOLD is a very promising company. Determination, discipline and financial strength enable it to achieve better economic performance, added Mr Letwin. I have full confidence in the future of IAMGOLD. I know that our employees, investors and all stakeholders in the communities where we do business want to be part of that future. "