Aluminium giant Alcoa axes 6,500 jobs

Alcoa, the world’s biggest aluminium producer, is slashing 6,500 jobs worldwide.

Alcoa, the world’s biggest aluminium producer, is slashing 6,500 jobs worldwide.

The Pittsburgh-based company is to close a plant in Lebanon County, Pennsylvania, as well as facilities in Europe, as part of a restructuring programme.

The cuts at the world's largest aluminium company represent 4.6% of its overall workforce of 140,000.

Company spokesman Mr Jake Siewert says 1,100 workers at facilities in the UK, Holland and Germany will receive their notices today.

READ MORE

The cuts will affect employees at 40 locations.

Alcoa says it will take a hit of up to £176 million in the fourth quarter. Severance costs will account for about half of the charges, with rationalisation of assets making up the remainder.

Officials at the firm say acquisitions in recent years made the job reductions necessary.

Alcoa bought Reynolds Metals in May, 2000, and has made several other transactions in recent months.

Chairman and chief executive Mr Alain Belda says the restructuring is the result of a strategic review of the company's assets.

Mr Belda says: "As a result of these decisions, Alcoa will emerge stronger, more competitive and better aligned to meet the needs of our customers."