By Sallieu S. Kanu
Freetown, May 25, 2026: Sierra Rutile Limited, now fully Sierra Leonean-owned under Leone Oil Company, has announced sweeping workforce reductions as part of a cost‑cutting drive aimed at salvaging dwindling returns. The restructuring, described by management as a “realignment,” could see hundreds of employees lose their jobs, sending shockwaves through one of the country’s largest mining employers.
Rising Costs, Shrinking Returns
The company spends an estimated $2.5 million monthly on fuel and another $1.8 million on logistics, yet returns remain weak. Management warns that without drastic cuts, Sierra Rutile risks collapse.
The proposed redundancy exercise will affect:
- 213 general staff (24% of the category)
- 80 senior staff (35% of the category)
- 46 management staff (46% of the category)
This follows earlier layoffs in 2024, when 468 workers were sent home. The company had already signaled plans to shrink its workforce from over 2,000 employees to about 1,000.
Government Oversight
Deputy Minister of Employment, Labour and Social Security Lansana Dumbuya met with management and workers to ensure compliance with the Employment Act 2023 and the Mining Collective Bargaining Agreement Gazette 2025.
“We are not part of the company’s finances, but we must ensure that any redundancy process is fair, lawful, and conducted amicably,” Dumbuya said, stressing that global economic pressures have forced companies worldwide to restructure.
Deputy Director of Labour Abdulai Conteh reminded workers that redundancy is a recognized process under law, assuring them that rights and benefits would be safeguarded.
Union leader Ahmed MK Josiah welcomed government’s intervention but criticized management for failing to inform workers earlier. “Redundancy has happened before in 2017 and 2024. Earlier communication would have helped workers prepare better,” he said.
Other employees voiced frustration over shrinking benefits and operational changes since Leone Oil’s takeover in 2024.
Chief Executive Officer Lima Suffian Kargbo admitted the decision was painful but insisted it was necessary for survival.
“We are not happy about this decision, but if we do not cut down costs, the company risks collapse,” he said, confirming that layoffs would be completed before the end of May, with operations resuming on a smaller scale in June.
In 2024, Leone Oil Company acquired full ownership, marking a shift from foreign to Sierra Leonean control.
The company laid off 468 workers in 2024, citing global rutile price pressures and rising operational costs.
Fuel price hikes and logistics costs have driven monthly expenditures above $4 million, eroding profitability.
Falling rutile prices and competition from other producers have forced Sierra Rutile to repeatedly restructure over the past decade.
As one of Sierra Leone’s largest mining employers, Sierra Rutile’s stability is critical to both local livelihoods and national export earnings.
Outlook
Sierra Rutile has undergone multiple rounds of layoffs in less than a decade, each time citing global commodity pressures and rising costs. Workers now brace for another wave of uncertainty, even as government pledges to act as a neutral mediator.