Albemarle Corporation (NYSE:ALB, ETR:AMC) announced on Wednesday that it is seeking to reduce costs by about $95 million a year due to falling lithium prices.
The chemical company said its expense-cutting initiatives will include reducing its workforce and lowering spending on contracted services, which is expected to unlock more than $750 million of cash flow over the near term.
Albemarle noted it expects its 2024 capital expenditures to be in the range of $1.6 billion to $1.8 billion, down from about $2.1 billion in 2023.
The company added that it expects to realize more than $50 million of these cost savings in 2024 and will pursue additional cash management actions primarily related to working capital.
Albemarle will take an undisclosed charge in the first quarter of 2024 related to the cost-cutting moves.
Shares of Albemarle slipped nearly 2% to $123.61 in early Wednesday trading.