Covid-19: Triumph Group announces furloughs for 2,300 employees

13 April 2020 (Last Updated April 13th, 2020 11:38)

Triumph Group has announced furloughs for nearly 2,300 employees working across its plants in the US and Europe to reduce capacity associated with Boeing Commercial Aircraft programmes.

Covid-19: Triumph Group announces furloughs for 2,300 employees
Triumph Group has updated the impact and the mitigation response steps during the coronavirus (Covid-19) pandemic. Credit: Viktor Forgacs on Unsplash.

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Triumph Group has announced furloughs for nearly 2,300 employees working across its plants in the US and Europe to reduce capacity associated with Boeing Commercial Aircraft programmes.

The company’s latest move is part of measures taken during the impact of the coronavirus (Covid-19) pandemic on the business.

Triumph’s announcement comes after Boeing extended the closure of factories in Washington and closed its Charleston, South Carolina plant until further notice.

The furlough period will last from two to four weeks and covers medical premiums belonging to the employee’s share. However, Triumph plants will continue to operate, meeting other customer demands.

The decrease in demand will eliminate about 200 full-time positions by 1 May 2020. Severance will be paid to impacted employees.

Supply chain demand will be adjusted with updated original, equipment, manufacturer (OEM) production and aftermarket forecasts. This will reduce working capital requirements.

Only two facilities of Triumph, Zacatecas and Mexicali in Mexico continue to operate. Together, the facilities employ approximately 1,900 individuals.

The factories comply with a government mandate for 30-day closure of non-essential operations effective from 31 March 2020.

Additionally, the company is working to limit the spread of the virus with plants temporarily closed for deep cleaning, employees provided with thermometers for self- check and given face masks to use onsite.

Triumph Group president and CEO Daniel Crowley said: “Though the spread of the Covid-19 virus appears to be slowing, its swift impact on the global aerospace industry and supply chain is resulting in significant reductions in air traffic and disruptions to our supply chain as our commercial customers and suppliers reduce output or halt production.

“At the same time, our customers are counting on us to provide essential services for their military, cargo and medical transport missions and to be prepared for the post-crisis recovery.”