Alcan to chop jobs (April 29, 2004)

Aluminum giant Alcan (AL-T) 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.

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