Reply #9: Alcoa to slash 13,500 jobs to save money

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Source: Associated Press

PITTSBURGH - Aluminum producer Alcoa Inc. is cutting roughly 13 percent of its global work force by the end of the year as it slashes costs in the face of a deteriorating world economy.

The elimination of 13,500 jobs, along with deep production and spending cuts, follow cost-saving measures unveiled by the Pittsburgh-based company last fall. At that time it reported a 52 percent decline in third-quarter earnings, citing sharply lower aluminum prices, weaker demand and a charge for curtailing a Texas smelter.

The latest moves also include the slashing of 1,700 contractor positions and the planned sale of four business units. Alcoa — the world’s third-largest aluminum maker — has also imposed a global salary and hiring freeze.

The company said it will reduce aluminum production by an additional 135,000 metric tons per year, lowering output by a total of more than 750,000 metric tons, or 18 percent, annually. Alcoa makes the metal and uses it to manufacture products such as truck wheels and jet wing parts.

Read more: http://www.msnbc.msn.com/id/28527491 /

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Hadn't seen this posted yet.