NEW YORK Coal producer Alpha Natural Resources Inc. is reducing its work force by 230 people as part of measures to cut costs, the company confirmed to AMM sister publication Steel First Nov. 4.
The Bristol, Va.-based company, hit by lower prices and shipments due to weak coal market conditions, reported a net loss of $458.2 million for the third quarter, nearly 10 times the $46.1-million net loss recorded in the same 2012 period. Revenue for the period fell 27.1 percent to $1.19 billion from $1.63 billion.
"The reductions are part of our plan to reduce operating and support expenses by more than $200 million annually beginning in 2014 in our effort to better align overhead and corporate support with our reduced operational footprint. This is to position Alpha as one of the most competitive companies in the industry when the market improves," a company spokesman said.
"Specifically, well be reducing about 230 mostly salaried positions across the organization, were changing some (human resource) policies and benefit plans, and were reducing discretionary spending and idle mine costs," he said. "About 100 of the positions are already vacant and will not be filled. All employees who are impacted will be told by the middle of November. I cannot provide specifics on locations or jobs at this time, and can say only that the reductions will take place across the organization."
A version of this article was first published in AMM sister publication Steel First.