Potash of Saskatchewan (POT) said it is suspending its Picadilly, New Brunswick, potash operations resulting in a workforce reduction of approximately 420-430 people there amid a challenging macroeconomic backdrop. The company said the move will help it cut the cost of goods sold by $40 million to $50 million in 2016, partially offset by severance and transition costs of around $35 million and will be reflected in first quarter earnings. The company said it will also eliminate significant capital expenditures, including capital of approximately $50 million in 2016 and $135 million in 2017/2018.

The Picadilly mine will be placed in care-and-maintenance mode at an estimated annual cost of $20 million in 2016 and $15 million in subsequent years. More than 100 open positions will be available for New Brunswick employees to join the company's Saskatchewan operations, along with relocation assistance.