Covid-19: Arconic implements cost-saving steps

Arconic Corp. is implementing cost-saving measures to mitigate Covid-19 impacts on the company.

The company aims to reduce operating costs by USD150m. These actions, as well capital reductions of USD50m, will improve the company’s financial profile by USD200m.

The following actions will be in effect until market conditions improve:

• The CEO’s salary and the board of directors’ annual cash retainer will be reduced by 30%.
• Senior-level management will incur a 20% salary reduction, and all other salaried employees will incur a 10% salary reduction.
• The salaried workforce will be restructured, targeting a 10% reduction.
• Adjusting to the customers’ reduced requirements, Arconic’s Tennessee and New York facilities have been idled until demand returns.
• All other US-based rolling and extrusion facilities will decrease production and operate with a reduced labour force through shortened work weeks, shift reductions, layoffs, and the elimination of temporary workers and contractors.
• All rolling mill facilities in Europe, China and Russia will modify schedules, adjust work hours, lower costs, and delay raises.
• Capital expenditures will be reduced by USD50m, or approximately 30%.

Chief executive Tim Myers said: “I am confident we will overcome present challenges to achieve sustainability and industry-leading growth well into the future.”