Reflecting an urgent shift in its priorities toward conserving cash and lowering costs - a month after BHP Billiton Ltd dropped a $66 billion hostile bid - Rio Tinto Group announced its plan to cut of 14,000 jobs globally, and slash $5 billion in spending as the global recession curbs demand for metals.

This disclosure by the Anglo-Australian mining giant dashed the expectations of investors who bet heavily on the success of a takeover of Rio. The pulled bid also raised concern that Rio might struggle to meet payments of billions of dollars in debt, related to its acquisition of Alcan Inc. last year.

The latest announcement also comes after the company reviewed its operations in October and said that it may review its capital spending in view of a "substantially deteriorated" global economy and weakening demand.

Rio said in a statement that there will be impacts on projects across the board - some projects will be canceled and others deferred until markets recover.

The company's Chief Executive Officer, Tom Albanese, told reporters: "We will minimize our operating and capital costs to appropriately low levels until we see credible and meaningful signs of a recovery in our markets, but will retain our strategic growth options. By taking these tough decisions now, we will be well positioned when the recovery comes."

The company wants to reduce net debt by $10 billion by the end of 2009 from $38.9 billion, for which it plans selling "significant assets or bringing in joint venture partners." According to the company statement, it is being assessed which assets could be divested to realize value, and the group "is pursuing discussions with third parties in relation to investment at the asset level."