Barnes Group to cut global work force by 8% with COVID-19 restructuring action
The Bristol, Conn.-based molding equipment maker expects cost savings of about $30 million through manufacturing and functional workforce reductions.
Molding equipment supplier Barnes Group Inc. has announced restructuring actions due to the COVID-19 pandemic that will see the Bristol, Conn.-based company reduce its global workforce by approximately 8%.
In a July 6 statement, the company said it will take a second quarter 2020 restructuring charge, primarily severance related, of approximately US$18 million. “This charge is anticipated to have a negligible cash impact in the second quarter, an approximate US$10 million cash impact in the second half of 2020, and the remaining cash impact in 2021,” Barnes Group officials said.
“The unprecedented disruption in global industrial and aerospace end markets brought on by the COVID-19 pandemic necessitates our adjusting costs throughout the company to align with demand,” said Barnes Group president and CEO Patrick J. Dempsey. “With the continued uncertainty related to the pace of recovery, we have had to make some difficult decisions. Our ability to manage costs allows Barnes Group to remain competitive as we weather the pandemic and best position the company for an economic resurgence.”
Through manufacturing and functional workforce reductions, the statement continued, Barnes Group anticipates annualized cost savings of approximately US$30 million with realization of the savings beginning in the second half of 2020.