Alcoa said Thursday it has eliminated about 90 positions at its technical center in Upper Burrell as part of an efficiency initiative. Those losing their jobs will receive severance pay and help finding new jobs, the metals producer said.
The layoffs do not affect Alcoa’s plans to invest $60 million, including up to $10 million in government assistance, to launch an advanced manufacturing initiative at the Westmoreland County facility. When it announced the project in September, Alcoa said it expected the venture to create more than 100 full-time jobs by next year. The company said the project is moving forward on schedule.
“Core innovation areas are not impacted and we continue to invest strongly in cutting-edge technologies,” the company said in an emailed statement.
Last March, the company laid off about 50 workers at the technical center.
Alcoa announced plans in January to slash overhead by $100 million this year and by $225 million over two years.
It is in the process of separating its metals production business, which has been stressed by falling commodity prices and global overcapacity, from its downstream businesses, which make aluminum and titanium parts for the aerospace, automotive and other industries. The split, announced in September, is expected to occur in the second half of this year.
The company reported a 2015 loss of $121 million on a 6 percent drop in sales.
Alcoa shares closed Thursday at $8.12, off 40 cents. They are down 18 percent this year after falling 38 percent last year.
Len Boselovic: lboselovic@post-gazette.com or 4120263-1941.
First Published: February 18, 2016, 8:56 p.m.
Updated: February 19, 2016, 2:44 a.m.
