Arconic has lowered its production and cost guidance for 2020 in response to the economic crisis caused by COVID-19.
Tim Myers, chief executive officer, Arconic said in a press statement that the company was taking “aggressive actions” in response to decreasing demand and to maintain the strength of its balance sheet.
The company has idled its New York and Tennessee facilities until the demand for rolled products strengthens. It will decrease production and operate at reduced hours with a smaller workforce at its other rolling mills in the US.
Speaking of the safeguards the company was taking at the locations that will remain operational, Myers said Arconic was taking “heightened measures” at all those locations to maintain the safety and health of its employees during this period.
Arconic plans to reduce its total workforce by around 10pc. Additionally, the company’s rolling mills in China, Europe, and Russia will reduce their work hours and work weeks, the company indicated. The reductions also include a 10-30pc salary cut across the board, with the percentage of salary reduction rising according to the seniority of the team member.
The Pittsburgh-headquartered aluminum company noted these actions would cut its operating costs by around $150mn during the year.