Lithium miner SQM starts laying off 5% of Chilean workforce - Reuters

SQM (NYSE:SQM) has begun laying off workers in its Chilean operations, Reuters reported Wednesday, citing a union source that also said the dismissals would amount to ~5% of its workforce nationwide.

SQM (NYSE:SQM) employed 8,344 people in Chile and elsewhere at the end of last year, with most working at the northern Chile operations where it extracts lithium.

A memo from the Sindicato SQM Salar union reportedly said company management had informed the group's president that 25%-30% of the layoffs would correspond to "general roles," and the rest to supervisors.

Lithium miners worldwide have been hit by a long slump in global prices, forcing some companies to pull back on plans and trim workforces, including U.S. firm Albemarle (ALB), which is the only other lithium miner in Chile.

SQM (SQM) missed Q1 earnings estimates and said it expected lower lithium prices to continue in Q2 due to global oversupply.