Triumph Group To Cut Jobs; Senior Executives To Forgo 10% Of Base Salaries

(RTTNews) - Triumph Group Inc. (TGI) plans to eliminate hundreds of jobs, implement furloughs for certain salaried employees, and suspend merit pay increases for all team members, as part of its response to the COVID-19 global pandemic.

Senior executives, including the CEO and direct reports, will forgo 10 percent of their base salaries starting April 1, 2020 during the crisis.

The company noted that it will eliminate about 250 full-time salaried employee and 250 contractor positions. It will pay severance to impacted employees, and expects to complete the reductions by May 1, 2020.

The company will implement furloughs for certain salaried employees of two weeks over fiscal 2021 to minimize reductions in force. Base salaries and wages for hourly and most salaried employees will be maintained. Medical benefits will continue during furloughs.

Triumph noted that it will suspend merit pay increases for all team members until the crisis has passed while forgoing management increases for one year. Triumph's Board has elected to reduce their cash compensation during the crisis by 25 percent. The Board will continue to adjust executive and Director compensation as the situation warrants.

Given Boeing's plans to close their Washington state factories for 14 days, Triumph will evaluate the need to furlough employees at a subset of Triumph plants where capacity is largely dedicated to Boeing Commercial Aircraft programs.