Albemarle to reduce global workforce by 6%-7%

During the third quarter, Albemarle (ALB) progressed the previously announced comprehensive review of its cost and operating structure, building on the actions announced with the company’s second quarter 2024 earnings release. Effective November 1, Albemarle implemented a new operating structure, which included transitioning to an integrated functional model designed to increase agility, deliver significant cost savings and maintain long-term competitiveness. The company is also announcing a global workforce reduction expected to impact 6%-7% of total headcount to drive significant cost-out and productivity actions. The annual run-rate cost savings of actions in connection with the comprehensive review is expected to be in the range of $300 million to $400 million driven by elimination of redundancies, reduced management layers, productivity benefits and optimized manufacturing costs. These savings are in addition to cost savings of over $100 million announced and executed this year. During the fourth quarter of 2024, the company expects to record a charge primarily related to severance and related benefit costs. Full-year 2025 capital expenditures are expected to be in the range of $800 million to $900 million, with the majority of that spend aligned with sustaining existing assets and resources and the remainder allocated to select growth projects and high-return, quick payback improvements.