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ArcelorMittal Launches Voluntary Separation Programs

11/28/2008 - ArcelorMittal meets with its European Works Council to present voluntary separation programs as part of a planned US$1 billion reduction of Selling, General and Administrative expenditures.

ArcelorMittal met this week with its European Works Council to present voluntary separation programs as part of the company’s plan to reduce Selling, General and Administrative (SG&A) expenditures by US$1 billion.
 
The company’s targeted reduction of SG&A expenses, a response to the current economic situation, is focused primarily on non-production employees—particularly those in SG&A functions across the globe. The company said the voluntary separation programs could involve up to 9000 employees, equivalent of approximately 3% of the its total global work force.
 
“This has been a very difficult decision for the company to take, as all of our employees are extremely important to us,” commented Bernard Fontana, Executive Vice President and Member of ArcelorMittal’s Management Committee with responsibility for Human Resources. “Sadly however the global economic reality means that it is only sensible to adopt such measures.
 
“Our priority is now to meet with all our stakeholders to explain the reasons for this decision and to reassure them that the process will be carried out in accordance with all social considerations,” added Fontana. “We are very grateful for the professionalism and dedication of our employees, all of whom have played an important role in building ArcelorMittal.”
 
The company said that the processes will be run in close collaboration with stakeholders and in accordance with the appropriate social considerations of the respective countries involved.
 
ArcelorMittal is the world's largest steel company, with over 326,000 employees in more than 60 countries. The company leads a number of major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers key steel markets, from emerging to mature.
 
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. ArcelorMittal recognizes that it has a significant responsibility to tackle the global climate change challenge; it takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. In 2007, ArcelorMittal had revenues of $105.2 billion and crude steel production of 116 million tonnes, representing around 10% of world steel output.