BRISTOL, CT — Barnes Group, a global provider of highly engineered products, differentiated industrial technologies and solutions, announced Monday that given the unprecedented macroeconomic disruption brought on by the global COVID-19 pandemic, it will take a second quarter 2020 restructuring charge, primarily severance related, of approximately $18 million. This charge is anticipated to have a negligible cash impact in the second quarter, an approximate $10 million cash impact in the second half of 2020, and the remaining cash impact in 2021.
Through manufacturing and functional workforce reductions, the company anticipates annualized cost savings of approximately $30 million with realization of the savings beginning in the second half of 2020. These actions are expected to reduce Barnes Group’s global workforce by approximately 8 percent.
“The unprecedented disruption in global industrial and aerospace end markets brought on by the COVID-19 pandemic necessitates our adjusting costs throughout the Company to align with demand,” said Patrick J. Dempsey, president and chief executive officer of Barnes Group. “With the continued uncertainty related to the pace of recovery, we have had to make some difficult decisions. Our ability to manage costs allows Barnes Group to remain competitive as we weather the pandemic and best position the Company for an economic resurgence."
The Company will provide an update of its business operations and end market environment on its Second Quarter 2020 Earnings Call scheduled for Tuesday, July 28, 2020.