With jobs around the world at a premium, especially in America, Alcoa (NYSE:AA) has had to make hard decisions and cut up close to 33 percent of its core workers, with about 30,000 being let go.
In the past, Alcoa has said they had to do it in order to survive, and company spokesman Kevin Lowery reiterated that recently, saying, "The first step was to battle through the downturn," Lowery says. "It was very, very dire times. And it wasn't that long ago."
Some have questioned Alcoa's, and others', motivations, but that makes no sense. If there was work for workers to do, Alcoa would have had to have kept them. They wouldn't have let them go if it would have cost them money or orders.
That's what is a check and balance in all this. A company can't let people go and survive unless there's simply no work or new orders to justify keeping them.
They can't tax or print money like a government can do to temporarily ride the tough times out.
Alcoa was right to do it, or the rest of their workers may not have eventually had a job either.