Global Alcoa restructure in the works

Jacinta CantatoreHarvey-Waroona Reporter
The new president of Alcoa Australia Michael Gollschewski.
Camera IconThe new president of Alcoa Australia Michael Gollschewski. Credit: supplied.

Alcoa has remained tight-lipped on whether blue-collar jobs will be on the chopping block as part of the company’s global restructuring.

Last month the company announced a new operating model aimed at “streamlining” the business model and reducing overhead costs.

The changes come into effect on November 1 and are expected to save the company $88 million by the end of next year.

Managing director of the company’s Australian operations Michael Parker and bauxite president Garret Dixon have already been axed.

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An Alcoa spokeswoman would not be drawn on whether the restructure would impact jobs at the company’s Wagerup or Pinjarra locations.

“The global restructure is focussed primarily on the salaried workforce and stems primarily from the elimination of the business unit structure,” the spokeswoman said.

“Alcoa will eliminate its business unit structure and consolidate sales, procurement and other commercial capabilities at an enterprise level.

“The new operating model is meant to bring management closer to operations.”

Michael Gollschewski has been announced as president of Alcoa Australia and vice-president of operations.

With more than 30 years’ experience in the resources sector, Mr Gollschewski worked for Alcoa from 1992 until 2007 and rejoined the company in July last year after a decade with Rio Tinto.

President and chief executive of Alcoa’s global operations Roy Harvey said the new structure would promote stronger connectivity between the company’s operations and executives and reduce overhead costs.

“These changes to our operating model build on the important progress we’ve made since our 2016 separation to reduce complexity, drive returns and strengthen the balance sheet, all with the goal of creating a stronger Alcoa,” Mr Harvey said.

The restructuring reduces the number of executives reporting to Mr Harvey from 12 people to seven.

The company led these changes from its Pittsburgh office in the United States.

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