Alcoa to Cut 13,500 Jobs, 1,700 Contractors

by Tina Kells | January 6, 2009 at 04:53 pm

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The job cuts and layoffs just keep coming as the United States plunges further into recession. Alcoa, the world's third largest aluminum company, announced today that it would be cutting 13% of its workforce; 13,500 employees and 1,700 independent contractors.

Alcoa (AA), the world's third-largest aluminum maker, said Tuesday it will cut 13,500 jobs, or 13% of its work force, and slash spending and output to cope with the global economic slowdown.

The Pittsburgh-based company also said 1,700 contractors will be cut as part of a broad-based plan to reduce costs that includes the planned sale of four business units and a global salary and hiring freeze.

As a result of its actions, Alcoa expects total fourth-quarter charges of between $900 million and $950 million. The company plans to report quarterly results Jan. 12. Alcoa also said the moves are expected to save the company about $450 million annually, before taxes.

"These are extraordinary times, requiring speed and decisiveness to address the current economic downturn," Klaus Kleinfeld, Alcoa's president and chief executive, said in a statement.