Twin Disc Announces Layoffs, Pay Cuts Amid Coronavirus

RACINE, WI — Racine-based Twin Disc has announced temporary layoffs and pay cuts for employees, citing the ongoing economic downturn related to the coronavirus pandemic.

“We are taking prudent and aggressive measures to respond to the rapidly evolving COVID-19 crisis as well as the significant reduction in the global oil and gas prices,” stated John H. Batten, Chief Executive Officer.

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This week, Twin Disc officials say the company is taking the following temporary actions at its North American operations to reduce costs:

• Temporary layoff of 10 salaried employees.
• Reducing paid hours of certain salaried positions by 25 percent.
• A 15 percent reduction in salaries for all remaining full-time employees; 20 percent for the CEO and COO.
• Estimated annualized savings from salaried payroll actions total $4.1 million
• Deferring all non-essential spending and capital projects

“The pace and scope of the COVID-19 crisis is unprecedented, which combined with significant declines in global oil and gas prices, has created a very challenging market environment. We are focused on taking the necessary actions, quickly, to respond to current market dynamics, while supporting our global customers, associates, and distribution partners," Batten said in a statement this week.

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