PITTSBURGH — Alcoa Inc., the world’s third-largest aluminum maker, said Tuesday it will cut 13,500 jobs, or 13 percent of its workforce, and slash spending and output to cope with the global economic slowdown.
The reductions expand on cost-cutting measures announced in October, when Alcoa reported a 52 percent decline in third-quarter profit because of sharply lower aluminum prices, weaker demand and a charge from curtailing a smelter in Texas.
In its latest announcement, which came after U.S. markets closed Tuesday, the Pittsburgh-based company said it will sell four business units and impose a global salary and hiring freeze.
Alcoa also said it will further limit smelting by more than 135,000 metric tons per year, lowering total aluminum output by more than 750,000 metric tons, or 18 percent, annually.
As a result of its actions, Alcoa expects total fourth-quarter charges of between $900 million and $950 million and savings of about $450 million annually, before taxes.
It plans to report quarterly results Monday. The production cuts are expected to be completed by the end of March.
