The global minerals and metal major Alcoa Corporation today announced that it plans to consolidate its worldwide administrative locations in a bid to streamline its overall business and lower costs.
Alcoa said that it will close its office in New York City and shift its global headquarters and principal executive office to Pittsburgh as of September 1, 2017.
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The location-wise consolidation activities will also see the closure of administrative offices in seven more locations across the U.S., Europe and Asia. The plan will be executed over the next 18 months. The affected employees will either be relocated to the remaining office locations or will be given the option to telecommunicate, the aluminium producer said in a statement.
Commenting on the extensive plan, Roy Harvey, Chief Executive Officer of Alcoa said, "We are taking every opportunity to streamline Alcoa to reduce complexity. Today’s announcement is another step in our drive to be a more competitive, operator-centric Company, with smaller corporate overhead, focused on profitable and successful operations.”
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The current consolidation plan of Alcoa is a part of a bigger strategy whereby, the company consolidated its business units earlier this year. In a drive to reduce administrative and operational complexity, Alcoa combined the aluminium smelting, cast products and rolled products businesses, along with the majority of the energy segment assets, into a new Alcoa Aluminum business unit.
Currently, Alcoa Corporation has three strategic business units (SBUs), namely, Alcoa Bauxite, Alcoa Alumina and Alcoa Aluminum.
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