Alcoa begins lay-offs of nearly one-third of workforce at Mattawan
Alcoa announced Tuesday, Sept. 16, that its Alcoa Electrical and Electronic Systems (AEES) business has initiated a restructuring of its United States operations serving the North American auto market as a result of continued decrease in customer demand.
In total, the workforce reduction across the US operations will impact approximately 165 jobs as AEES adjusts capacity to economic and structural changes in the North America light truck and SUV market demand.
AEES employs approximately 340 associates at its Mattawan manufacturing facility. Approximately 70 associates will be laid starting this week, with another 30 anticipated over the course of the next two quarters, should no turnaround in the market occur. The plant has been rotating voluntary layoffs throughout the summer in an effort to weather the downturn without having to make permanent reductions.
"The conditions in the North American automotive market remain extremely challenging," said Jon A. Jensen, AEES president for Light Vehicle Market and Operations-Americas. "This action is a result of our customers' significant volume reduction for several vehicle platforms and in no way is a reflection on our workforce, which has done an incredible job under very trying circumstances," Jensen continued. "Unfortunately, in order to align our manufacturing and structural capacity with this redefined market demand and to improve overall efficiency and competitiveness, we have had to make this very difficult decision. We will work with the community and stakeholders to try to minimize the impact as much as possible.
"We recognize the impact that this workforce reduction will have on the lives of our employees, their families, and the community," said Jensen. "Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees."
In total, the workforce reduction across the US operations will impact approximately 165 jobs as AEES adjusts capacity to economic and structural changes in the North America light truck and SUV market demand.
AEES employs approximately 340 associates at its Mattawan manufacturing facility. Approximately 70 associates will be laid starting this week, with another 30 anticipated over the course of the next two quarters, should no turnaround in the market occur. The plant has been rotating voluntary layoffs throughout the summer in an effort to weather the downturn without having to make permanent reductions.
"The conditions in the North American automotive market remain extremely challenging," said Jon A. Jensen, AEES president for Light Vehicle Market and Operations-Americas. "This action is a result of our customers' significant volume reduction for several vehicle platforms and in no way is a reflection on our workforce, which has done an incredible job under very trying circumstances," Jensen continued. "Unfortunately, in order to align our manufacturing and structural capacity with this redefined market demand and to improve overall efficiency and competitiveness, we have had to make this very difficult decision. We will work with the community and stakeholders to try to minimize the impact as much as possible.
"We recognize the impact that this workforce reduction will have on the lives of our employees, their families, and the community," said Jensen. "Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees."
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