Alcan to chop jobs (May 10, 2004)

Aluminum giant Alcan will slash 277 jobs at the Paris headquarters of Pechiney, with which it recently merged. The move is designed to ensure the Montreal-based company meets its target of saving US$350 million annually by the end of 2005.

Alcan is considering cutting jobs at operations in Germany, Britain and Switzerland as well.

Alcan intends to spend US$250 million on the amalgamation, plus US$90 million in capital spending.

The major expects to save 35% on purchasing costs, 30% on general and administrative costs, 22% on manufacturing costs, 6% by changing its product mix, and 7% on research and development.