TransDigm Group Incorporated (NYSE: TDG), an aircraft component manufacturer, has announced cost mitigation efforts as a result of disruption in the aerospace and travel industries caused by the COVID-19 virus, the company said.
The company said it is beginning to see significant decreases in demand across its commercial aerospace business and expects this trend will continue in the coming months. As a result, the Company has adjusted its estimated shipping levels accordingly and will reduce its workforce by up to 15%.
Impacted domestic employees will receive a substantial lump sum payment upon their departure based on their tenure and will receive an additional USD 4,000 to defray expenses associated with health care costs, job-search costs or for any other purpose.
As an additional action to reduce costs, TransDigm´s senior management team will substantially reduce their cash compensation for the balance of 2020. TransDigm´s President and Chief Executive Officer, Kevin Stein, 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 will forgo their annual cash board fees.
TransDigm is focused on mitigating the impact to its business while supporting customers and employees. This includes following guidance from the World Health Organization and US Centers for Disease Control and Prevention to prevent the spread of the virus.
TransDigm Group, through its wholly-owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today.