Alcoa to Cut More Than 4,200 Mexico Jobs
PITTSBURGH (AP) _ More than 4,200 workers in Mexico will lose their jobs as Alcoa restructures its Alcoa Fujikura Ltd. Automotive division, the aluminum giant said Tuesday.
The Pittsburgh-based company will permanently cut 1,700 of 11,000 jobs at its Ciudad Acuna operation, and 2,550 of 8,400 jobs in Torreon by July 31. The company said the cuts _ part of its previously announced restructuring plan _ were necessary for it to remain competitive.
The AFL Automotive operations in Piedras Negras, which has 4,600 employees, will also be affected. But because a new production line is starting up there, an unspecified number of workers that would have been cut will continue to work by attending special training programs.
The plants make electrical systems and other products for Alcoa’s North American light and heavy vehicle markets.
``This difficult decision is the result of overall market conditions,″ said Jose Alvarado, vice president of AFL Automotive-Mexico. ``The North American light vehicle market is extremely competitive and we need to make these tough decisions in order to be effective today and beyond.″
Employees will be offered unspecified severance packages, along with help in finding other jobs, Alcoa said.
AFL Automotive employs about 30,000 people in Mexico, including employees at three plants not affected by the cuts. Alcoa has about 127,000 in 40 countries.
In trading on the New York Stock Exchange, Alcoa shares fell 30 cents to close Tuesday at $22.97.
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