Rio Tinto is adopting a reduction in the number of its contractors and payrolls, as a way to survive the economic crunch. It is reducing the headcount by 14,000, inclusive of 5,500 employees, in effect generating an annual savings of $1.2 billion. The company has targeted to slash its net debt by $10 billion by end-2009 and its total capital expenditure for 2009, from above $9 billion to $4 billion. %% The company believes that the time period since it released its third quarter results, has seen a slide in the demand for commodities. Its net debt amounted to $38.9 billion on October 31, which shrunk by $3.2 billion since June. %% The company is adopting the strategy of minimizing its operating and capital costs upto feasible low levels until the markets recover fruitfully, although it will continue working on its strategic growth options. It is aiming at discovering, developing and operating large, long-life, low-cost mining assets. The company is said to be canceling some projects and deferring some till the markets recover.