Noranda Aluminum Holding Corporation today announced planned workforce reductions involving approximately 190 employees and contract workers. The reductions are expected to generate approximately $15 million of annual savings and are part of Noranda's CORE productivity program that targets $225 million of savings from 2014 to 2016.
"While this workforce reduction is difficult, it is a necessary part of our commitment to continue to enhance our cost structure and create shareholder value," said Layle K. "Kip" Smith, Chief Executive Officer and President. "This reduction has been a thoughtfully planned part of our CORE program and will not impact service levels for our valued customers or the other ongoing growth and productivity projects we are executing."
The majority of these reductions are expected to be achieved through terminations occurring before the end of 2013. Noranda estimates these actions will result in one-time pre-tax charges totaling approximately $6 million, primarily due to termination benefits. Noranda expects substantially all of these charges will be recorded in the fourth quarter of 2013 and result in cash expenditures paid primarily in the first quarter of 2014.
The workforce reduction plan includes approximately 75 employees in the Company's Primary Aluminum business, 30 to 40 employees each in its Alumina, Bauxite, and Flat-Rolled Products businesses, and approximately 10 employees in the Company's Corporate function. As of November 30, 2013 Noranda employed approximately 2,500 people.