Among major items:

• Smelting Output Reduced 750,000 mtpy, or 18% of Output
• Reducing Headcount by 13,500 (13% of Global Workforce) and an Additional 1,700 Contractor Positions
• Freezing Salaries and Hiring
• Selling Four Non-Core Downstream Businesses
• Reducing 2009 Capital Expenditures by 50%
• Taking Advantage of New Sourcing For Raw Materials

“These are extraordinary times, requiring speed and decisiveness to address the current economic downturn, and flexibility and foresight to be prepared for future uncertainties in our markets,” said Klaus Kleinfeld, President and CEO of Alcoa Inc.  “We are taking a wide-ranging set of aggressive, but prudent, measures to ensure that Alcoa maintains its competitive lead in today’s challenging markets while also emerging even stronger when the economy recovers.”   

Actions for Russian operations will target the alignment of production with demand and will be aimed at reducing costs. About 18% of the workforce will be impacted by the re-structuring. 

Restructuring measures for Russian locations are now being finalized and will be communicated in details soon.  The measures will be executed during the course of 2009.
The restructuring at all Russian locations (Samara, Belaya Kalitva and Moscow) will be done in combination with the series of re-deployment and re-training measures to help the impacted employees. 
 
“Russia remains one of the strategic markets for Alcoa.  The restructuring plan that is currently being finalized and which we will soon communicate will be another indication of the Company’s commitment to the Russian market and will allow us to enhance our competitive position in the long run,” said Andrey Donets, President of Alcoa Russia. “We fully understand that we will have to make a number of very tough decisions, but such is the requirement of the current economic situation which we can’t ignore. At the same time we will apply maximum efforts to alleviate the action of this crisis on our employees.”