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.
Covid-19-related cost savings in detail
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.”