RACINE, Wis. — Twin Disc Inc. will reduce operating expenses through a number of corporate cost-cutting initiatives, according to a recent release from the company. The company estimates the cumulative savings of these cost cutting initiatives will be $25 million in fiscal year 2010.
Steps include a reduction of annual base salaries of salaried employees including all executive officers, removal of the fiscal 2010 bonus/incentive plan, changes to several benefit programs, an across-the-board reduction of marketing, advertising, travel and entertainment expenses, and staff reductions and layoffs.
Twin Disc will let go 16 salaried employees and 20 hourly employees at its Racine operations in addition to rolling layoffs for its Racine workforce throughout fiscal year 2010. The company will also close its Racine manufacturing facility for the month of July.
These measures supplement additional layoffs and cost cutting measures being implemented at the company’s European operations in Belgium, Italy and Switzerland.
“Like many global manufacturing companies today, the breadth of the economic recession has impacted all facets of our business," Michael E. Batten, the company's CEO, said in the release. "While it appears that the recession is beginning to moderate, the underlying market trend has softened and has resulted in slowing sales, order rates and backlog."
Twin Disc designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment.
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