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Alcan Incorporation
Rio Tinto Alcan Inc. is Canada's largest aluminum company and the world's third largest, behind its former parent Alcoa (from which it split in 1928) and Rusal (however Alcan is largest by sales).
What is Downsizing?
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees.
Company undergone Downsizing:
Actually many big companies are undergone downsizing, one of these is the ALCAN INC.
Reasons:
According to Travis Engen, President and Chief Executive Officer of Alcan Inc.
1. Restructuring is necessary to ensure Alcan’s competitiveness in the marketplace and to create favorable conditions for future growth and expansion.
2.Maintaining competitiveness is the best insurance for long term sustainable employment.
The proposed restructuring effort would include:
* The downsizing of four sites: Laffon in Italy, Kolin in the Czech Republic, Froges (pharmaceutical workshop) in France and Alcan Mass Transportation Systems (AMTS) business unit in Zurich, Switzerland;
* two potential sales: Mercus and Froges (high purity business) in France;
* Three plant closures: Flemalle in Belgium, Cruseilles in France, Garbagnate in Italy.
In these restructuring cause the downsizing of jobs resulting to reduction of employees .In Europe, there will be a proposed reduction of approximately 520 jobs. If there is reduction, there is also an expected creation of 40 new jobs in France and Switzerland, as well as other additional jobs in Italy. Alcan presently employs 46,000 people in Europe.
Reference: http://www.azom.com/news.asp?newsID=2346[/color]
