(Bloomberg) -- Vale SA’s base metals subsidiary will let go of dozens of managers to simplify its corporate structure and improve performance, according to people familiar with the matter.

The job cuts are part of an effort to simplify the Toronto-based firm’s organization and extend greater decision-making power to operational teams, said one of the people, who declined to speak publicly on internal discussions. Vale Base Metals didn’t provide comment while email and phone calls to its parent weren’t immediately returned.

The move marks the first major overhaul since Shaun Usmar joined Vale Base Metals as chief executive officer in October. The industry veteran came into the role with a goal of improving output and reining in costs at the company’s suite of nickel and copper assets in Canada, Brazil and Indonesia.

“We cannot spend our way to prosperity,” Usmar told shareholders Tuesday at Vale’s investor event in New York. “We have to be as lean and cost-oriented as possible in order for us to realize the potential.”

Vale Base Metals informed some staff as well as one of the unions representing workers at its Canadian nickel assets of a “managerial reorganization” this month, according to Raymond Hammond, vice-president of United Steelworkers Local 6500, which represents Vale mine workers in Ontario.

“We were informed there’s a managerial reorganization that will involve layoffs at the senior level,” said Hammond, who added that members of the Steelworkers union aren’t affected.

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