PITTSBURGH – Alcoa Inc. will slash 6,500 jobs at facilities in the Americas and Europe and a plant in Pennsylvania is being closed as part of a restructuring intended to make the world's largest aluminum company operate more efficiently.
The planned cuts represent 4.6 percent of its overall work force of 140,000 employees worldwide.
Alcoa announced the job reductions Monday, saying they will result in an after-tax charge of as much as $250 million in the fourth quarter. The cuts will affect employees at 40 locations.
Company spokesman Jake Siewert said some 1,100 workers at facilities in the Netherlands, Germany and the United Kingdom would receive their notices Monday. The layoffs include the closing of a plant in Lebanon County, Pa., affecting 240 workers.
Alcoa officials said acquisitions in recent years made the job reductions necessary. The company, based in Pittsburgh, purchased Reynolds Metals Co. for stock in May 2000 and has made several other transactions in recent months.
Alcoa chairman and CEO Alain Belda said Monday the restructuring is a result of a strategic review of the company's assets. About half of the charges will be for employee severance costs and the rest for rationalization of assets.
``As a result of thee decisions, Alcoa will emerge stronger, more competitive and better aligned to meet the needs of our customers,'' said Belda.
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