TransDigm announced today it will reduce its workforce by 15% due to the COVID-19 pandemic, and plans to implement "one- to two-week furloughs" at many facilities over the next six months.
"Impacted domestic employees will receive a substantial lump sum payment upon their departure based on their tenure and will receive an additional $4,000 to defray expenses associated with health care costs, job-search costs or for any other purpose," TransDigm said in a statement. "The company is hopeful that these payments will help to significantly mitigate the impact of these events on its employees."
Additionally, TransDigm said its senior management team "will substantially reduce their cash compensation for the balance of 2020." Kevin Stein, the company's president and CEO, is reducing his cash compensation by over 50% and other senior executives will also substantially reduce their cash compensation as well. Members of TransDigm's board of directors also will forgo their annual cash board fees, the company said.
TransDigm also announced it is withdrawing its fiscal year 2020 financial guidance.
Despite the coronavirus outbreak, "TransDigm remains confident in its business model over the long term and hopes to return to normal employment levels as soon as practical," the company said.