The world's largest aluminum maker Alcoa Inc. said Tuesday it plans to cut 13,500 jobs or 13 percent of its workers as an action to address the economic downturn.
Alcoa Inc. will also slash 1,700 contractor positions, and freeze salaries and hiring as the aluminum maker companies face lower demand for metals due to the economy recession. The restructuring program is expected to save the company approximately $450 million per year, before taxes.
These are extraordinary times, requiring speed and decisiveness to address the current economic downturn, and flexibility and foresight to be prepared for future uncertainties in our markets, said Klaus Kleinfeld, President and CEO of Alcoa Inc. on a press release today.
Alcoa Inc. said the total charges for the 4th quarter 2008 due to restructuring, impairment and other special charges are expected to be between $900 and $950 million. Its report on quarterly results is due on Jan. 12.
More moves of its restructuring plan announced today include:
â€¢ Smelting Output Reduced 750,000 mtpy, or 18% of Output
â€¢ Selling Four Non-Core Downstream Businesses
â€¢ Reducing 2009 Capital Expenditures by 50%
â€¢ Taking Advantage of New Sourcing For Raw Materials
â€¢ Exchanging Equity Stakes with Orkla; Alcoa To Take 100% Ownership of 2 Elkem Smelters For its 45% Stake in SAPA
â€¢ After-Tax Charges For 4Q 2008 Range from $900 to $950 Million, 80% Non-Cash