Aluminum products and wrap maker Alcoa (AA) - Get Report on Monday announced a restructuring plan that will eliminate at least one of its units, cut its executive team, consolidate sales and reduce costs.
The maker of bauxite, alumina and aluminum products said in a statement that as of Nov. 1 it will implement "a new operating model that will result in a leaner, more integrated, operator-centric organization that accelerates the company's strategic priorities."
As part of that effort, the company's executive team will be streamlined to seven department heads from 12 that report to the CEO, which will "reduce overhead" as well as increase connectivity between the company's plants and leadership.
Specifically, Michael Parker and Garret Dixon, heads of the company's alumina and bauxite divisions respectively, will depart, along with other executives.
"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," CEO Roy Harvey said in the statement.
Shares of Alcoa were down up 3.66% at $19.81 in early trading on Monday. They ended the day Friday down 2.6% at $19.11.