FACTBOX-Alcoa actions to counter economic downturn

Tue Jan 6, 2009 7:41pm EST
 
[-] Text [+]

NEW YORK, Jan 6 (Reuters) - Following are the actions announced by Alcoa Inc (AA.N) on Tuesday to address the economic downturn:

* Primary aluminum smelting cuts to reduce output by more than 750,000 tonnes per year, or 18 percent of annualized output.

* Alumina production to be cut to a total of 1.5 million tonnes per year.

* Total headcount cut by more than 13,500, or 13 percent of Alcoa's worldwide workforce, by the end of 2009.

* An additional 1,700 contractor positions will be eliminated.

* A global salary and hiring freeze.

* Procurement action to lower costs for energy, coke, caustic soda and aluminum fluoride.

* Initiatives to secure raw materials from alternate suppliers.

* Divesting four non-core downstream businesses: Electrical and Electronic Systems; Global Foil; Cast Auto Wheels; and Transportation Products Europe.

* Cutting capital expenditures in 2009 by half to $1.8 billion.

* Cost reductions in global primary metals and alumina operations, affecting approximately 2,600 employee and contractor positions.

* Restructuring and downsizing of Mill Products businesses in Europe and North America resulting in reduction of 900 positions.

* Elimination of 235 positions in the U.S. and Europe in Alcoa's global hard alloy extrusion production operations.

* Realignment of Russian operations affecting 18 percent of workforce. (No number given)

* Planned sale of Electrical and Electronic Systems will reduce positions across North America and Europe by 6,500.

* Exiting the auto cast wheel business and consolidation of the Beloit, Wisconsin facility employing 265 by June 1, 2009.  Continued...

 
Kenneth Griffin, Founder, President and CEO, Citadel Investment Group LLC, speaks during the "Financial Recovery: When and How?" panel at the 2009 Milken Institute Global Conference in Beverly Hills, California April 27, 2009. REUTERS/Phil McCarten
Citadel enters the fray

Kenneth Griffin's powerful hedge fund has waded into the case of Goldman Sachs' purloined computer code, suing three of its former employees for setting up Teza Technologies.  Full Article | Full Coverage 

Companies In This Article

Join the Reuters Consumer Insight Panel and help us get to know you better

Join the Reuters Consumer Insight Panel and help us get to know you better