Alcoa Fujikura Ltd. unit will cut about 10% of its Mexican workforce to adjust capacity to lower production among its automotive customers.
The unit, which makes electrical distributors for the North American light and heavy vehicle markets, will cut 1,300 positions in Torreon and 1,050 positions in Piedras Negras. The unit employs roughly 24,000 people in Mexico.
"This difficult decision is the result of the competitive conditions of the global market, and the actions in Piedras Negras and Torreon are necessary to adjust AFL capacity to better match demand," the company said in a release. Severance and outplacement and transition support services will be offered to all affected employees.
Alcoa shares were up 50 cents, or 1.7%, to $29.80 Friday morning, benefiting from a rise in gold and other commodity prices.