The economic downturn means that basic commodities manufacturing and production is getting seriously affected. Alcoa, which produces Aluminum, is making drastic changes. Among all the reasons - Automotive production is falling drastically, and there is a surfeit of inventory throughout the Automotive supply chains.
- Cutting output by 18% - 750K tonnes/year
- Reducing 2009 capital expenditures by 50%
- Cutting 13 - 15% of workforce (13,500 - 15,000 jobs)
- Salary and hiring freezes. Contract positions being eliminated
- Selling four business units that don't deal with core products, and that should bring in about $100MM (about the amount these four lost in 2008 - a net loss of ~6%):
- automotive wheels
- electric systems
- global foil
- transportation products
Alcoa had gone through a round of layoffs around June - August, which were a little prior to a full realization of the economic conditions hitting the world.
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