The company previously projected to produce 3 million tons of coal this year at the mine, but now it expects to produce around 2.3 million tons.
Peabody is also planning to cut 35- 40% of its employees and contractors associated with the mining project and will have a one shift production.
However, the company claims that it will continue to meet customer commitments in the present environment with reduced production levels in line with contracted sales.
According to Peabody, the new plan has been sketched to increase productivity, lower costs, and improve cash flow and maintain the coking coal reserves for future sale when the market conditions improve.
Peabody Energy said: "The initiative is one of a range of measures the company is taking to improve the business across four key areas of management emphasis: operational, SG&A, financial and portfolio."
