OSLO, Norway—Elkem S.A. is implementing a $17.6 million global restructuring plan to optimize efficiency and cost position.
The two-year global productivity improvement plan will streamline the organization, and is expected to save the company $307 million annually, Elkem said in a 3 March statement. While the savings mainly will be achieved through the planned reductions of personnel, the company said it was too early to estimate how many full-time jobs will be affected.
Priortization will given to reducing the number of contractors and to job cuts through attrition.
Elkem expects positive earnings contributions from the restructuring to be realized in early 2021, with "full potential" to be achieved from the end of 2021.
The Oslo-based supplier of silicones said the measures are being taken because it failed to meet profitability targets amid market uncertainties.
"Corrective actions are expected and needed," Elkem CEO Michael Koenig said, "our aim is to improve Elkem's profitability to fund future growth and specialization."
Elkem said it was in close dialogue with employee representatives to carry out the plan in compliance with local labor laws.