Given that Boeing has extended closure of its Washington state factories indefinitely, and closed its Charleston, South Carolina plant until further notice, Triumph has announced furloughs for approximately 2,300 employees across its plants in the U.S. and Europe for two to four weeks to reduce capacity associated with Boeing Commercial Aircraft programs. These plants will remain operational and continue to support other customer demands. Triumph will provide one week of company pay and will cover the employee share of medical premiums during the furlough period.
In addition to the previously announced 500-person reduction in force as part of its austerity measures, Triumph will eliminate approximately 200 full-time positions due to decreased demand. Triumph will pay severance to impacted employees consistent with existing policies. These reductions are expected to be completed by May 1, 2020.
To reduce working capital requirements, the company will also adjust its supply chain demand consistent with updated OEM production and aftermarket forecasts.
Triumph’s prior restructuring and austerity actions, and those listed above, preserve Triumph’s liquidity while customer plants are closed, allowing Triumph to continue to support its customers’ forecasted rates of production. Further workforce adjustments may be required based on site closures or changes in demand for Triumph’s products and services. As previously reported, Triumph has adequate liquidity to support its operational requirements.
Although the situation remains fluid, all but two of Triumph’s factories are operational. The company’s two facilities in Mexico (Zacatecas and Mexicali), which employ approximately 1,900 individuals, are complying with a government mandate for 30-day closure of non-essential operations effective March 31, 2020. Triumph will adjust its plans as government decisions and Company policies evolve.
