Rio Tinto Alcan, the aluminium division of mining giant Rio Tinto, said Tuesday it planned to reduce its global workforce by about 1,100 staff because of the economic slowdown. "Plans are in place to reduce the workforce by approximately 1,100 roles - 300 contractors and 800 employee roles," Rio Tinto said in a statement.
"In addition, substantial cost reduction programmes are being implemented across all Rio Tinto Alcan facilities." Anglo-Australian company Rio Tinto bought Canadian aluminium group Alcan for 38.1 billion dollars in 2007. Rio Tinto Alcan on Tuesday said that "in response to global economic conditions," it would cut its aluminium production by six percent and shut the Beauharnois smelter in Quebec.
"Our goal is to align production with customer demand and reduce our operating costs as much as possible," Rio Tinto Alcan chief executive Dick Evans said in a statement. "Increasing efficiency throughout our operations and streamlining our organisation will be crucial to achieving our objectives and preserving value for shareholders. "We are taking steps towards optimising our world class portfolio of low cost, long life assets, the majority of which are in the lowest half of the industry cost curve," Evans added.
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