De Beers, the world's top diamond producer, will cut production, capital spending and jobs this year as the global recession hits demand for luxury goods, officials said on Friday.

In the first half of 2009, we will reduce production across our mining portfolio and adjust that as we go based on client demand, Director of Communications David Prager told Reuters in an interview.

Suffice to say, the reduction in production will be significant, spokeswoman Lynette Gould said in an email.

Consultation on job losses has begun at mines in Botswana, South Africa, Namibia and Canada as well at the head office in London, Prager added. (Reporting by Eric Onstad)

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