Carpenter says that it plans to reduce around 20% of the company’s total global salaried positions, in order to generate annual cost savings of around US$30 to US$35 million. The company also expects to record a pre-tax charge of approximately US$10 million Q4 2020 as a result of the job reduction.
Carpenter says that it also reviewing capital investments to target existing and future growth markets, implementing a global hiring freeze, deferring annual merit increases for most salaried employees, and effecting temporary furloughs for some production, maintenance and salaried employees.
‘Although difficult, we have taken thoughtful and aggressive actions to combat the uncertainty in the near-term environment,’ said Tony R Thene, president and CEO. ‘Our actions are focused on the future and are expected to have a significant impact on profitability and free cash flow in fiscal year 2021 and beyond. […] The long-term outlook for our key end-use markets remains solid and we have significantly bolstered our position during these uncertain times by demonstrating our resilience in support of our customers’ needs.’
This story uses material from Carpenter, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.