Alcoa cuts 106 jobs at Washington smelters

Aluminum producer Alcoa will cut 106 jobs at its smelters in Ferndale and Wenatchee as it eliminates 13,500 jobs, or 13 percent of its global work force, to cope with the economic slowdown.

Spokesman Kevin Lowery said the Pittsburgh-based company today told 80 employees in Ferndale they will lose their jobs. Another 26 jobs will be eliminated at its Wenatchee Works, he said.

Wenatchee Works spokeswoman Sharon Kanareff said the plant also cut 43 jobs in November. The latest layoffs bring total employment at the Wenatchee plant to about 370 workers.

The Ferndale smelter is running at approximately two-thirds capacity and employs around 640, according to the Alcoa's web site. Lowery said the company made cuts there in November as well, but he didn't have details available.

"Production will not be impacted at either locale," he said.

Alcoa also said 1,700 contractors will be cut as part of a broad-based plan to reduce costs that includes a global salary and hiring freeze.

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

The news comes after Alcoa announced production reductions last fall. It said Tuesday 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 annually, or 18 percent.

As a result of its actions, Alcoa expects 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.

Shares of Alcoa fell nearly 4 percent in after-hours trade after rising 26 cents, or 2.2 percent, to close at $12.12 on Tuesday.