Lesotho’s flagship diamond operation, the Letseng mine, is trimming its workforce as the industry struggles with a prolonged price slump. Parent company Gem Diamonds confirmed that 240 employees—about one-fifth of the mine’s staff—have been laid off in a cost-cutting drive.
Diamonds remain central to Lesotho’s economy, accounting for up to 10% of its GDP and serving as one of the landlocked nation’s top export earners alongside textiles. Letseng, famed for unearthing some of the world’s most exceptional stones—including the 910-carat “Lesotho Legend”—has been forced to revisit its mining plan as global conditions weigh heavily on revenues.
Gem Diamonds CEO Clifford Elphick said the industry continues to face “sustained pricing pressure” due to weaker demand in major markets, geopolitical uncertainty, and tariff issues tied to India.
The financial strain is evident: Gem Diamonds reported a loss of $11.7 million in the first half of 2025, reversing a profit of $2.1 million from the same period last year. Revenues dropped 42%, while an impairment of $10.7 million was booked against Letseng’s value. Average diamond prices slipped to $1,008 per carat—a 26% year-on-year decline—on production of 47,125 carats, down from 55,873 a year earlier.
Industry-wide, rough diamond prices have retreated roughly 35% since early 2022, pressured by evolving consumer tastes and the rise of lab-grown alternatives, according to the Zimnisky Global Rough Diamond Price Index. In response, mining firms worldwide are scaling back production, shelving projects, and reducing staff.