Alcoa To Consolidate Sales, Procurement And Commercial Operations, Cuts Staff

Alcoa Corporation AA announced it will cut staff and eliminate its business unit structure and consolidate sales, procurement and other commercial capabilities at an enterprise level effective Nov. 1.

Under the new operating model, the Alcoa executive team will be streamlined from 12 to seven people directly reporting to the CEO. The new structure will reduce overhead and “increase connectivity’ between the company's plants and leadership.

"These changes to our operating model build on the important progress we've made since our 2016 Separation to reduce complexity, drive returns and strengthen the balance sheet, all with the goal of creating a stronger Alcoa," said Roy Harvey, CEO of Alcoa. "Most importantly, this new organizational structure reinforces that our operations are the heart of Alcoa. Among other benefits, it will promote stronger connectivity between our plants and executive leadership and swift decision-making."

The new executive team will be made up of Leigh Ann Fisher, Jeffrey Heeter, Benjamin Kahrs, Michelle O'Neill, William F. Oplinger, Timothy Reyes and John Slaven.

Alcoa shares were trading down 0.52% at $19.01 in Monday's pre-market session. The stock has a 52-week high of $45.45 and a 52-week low of $16.46.

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Alcoa's Wagerup alumina refinery in Australia. Courtesy photo.