Alcoa Inc. is cutting approximately 13% of its global work force by the end of the year in an effort to reduce costs. The company plans to eliminate 13,500 jobs and cut both production and spending to follow cost-saving measures released last fall. The latest moves include slashing 1,700 contractor positions and the planned sale of four business units – its Electrical and Electronic Systems, Global Foil, Cast Auto Wheels and Transportation Products Europe businesses. Alcoa, which is the world’s third-largest aluminum producer, has also imposed a global salary and hiring freeze. Smelting reductions of more than 135,000 metric tons per year will be implemented, resulting in an 18% reduction of total primary aluminum output. Among the production cuts will be smelting operations in Alcoa, Tenn.
Alumina production will also be reduced accordingly across the global refining system to a total of 1.5 million metric tons per year. Cuts include about 18% of Alcoa’s jobs in Russia and about 6,500 jobs in its Electrical and Electronic Systems business, which serves the auto and heavy-truck markets across Europe and North America. Alcoa also plans to consolidate operations that supply the building and construction markets.
Alcoa to Cut Global Work Force
January 7, 2009