Freetown, 25th May, 2026 — Sierra Rutile Limited, now fully Sierra Leonean-owned under Leone Oil Company, has announced plans to slash its workforce in a bid to rein in spiralling costs and salvage dwindling returns. The move, described as a “realignment,” could see hundreds of employees lose their jobs, sending shockwaves through one of the country’s largest mining employers.
The numbers tell a stark story. Sierra Rutile spends $2.5 million every month on fuel and another $1.8 million on logistics, yet returns on investment remain weak. Management says the company risks collapse if drastic cuts are not made.
The proposed redundancy exercise will affect: 213 general staff (24% of the category), 80 senior staff (35% of the category) and 46 management staff (46% of the category)
This follows earlier layoffs in 2024, when 468 workers were sent home. The company had already signalled plans to shrink its workforce from over 2,000 employees to about 1,000.
Deputy Minister of Employment, Labour and Social Security, Lansana Dumbuya, met with management and workers to ensure the process complies 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 raised concerns about shrinking benefits and operational changes since Leone Oil took over 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. Kargbo confirmed the layoffs would be completed before the end of May, allowing operations to resume on a smaller scale in June.
For many Sierra Leoneans, the announcement feels like déjà vu. 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 promises to act as a neutral mediator.
