Twin Disc to save $4.3 million with restructuring

Freeman Staff

Nov. 10, 2015

RACINE — Twin Disc, Inc. announced additional restructuring and cost reduction measures, which will include lowering the base salaries for the company’s corporate officers and the elimination of 15 salaried positions. In addition, there will be reduction in base salaries and wages of salaried and hourly employees at the Twin Disc’s Racine headquarters and domestic manufacturing facilities, and temporary layoffs at its Racine operation.

Twin Disc also plans to reduce marketing, travel and professional service expenses.

The decision to further reduce costs, according to Twin Disc, was in response to the challenging global market conditions in Twin Disc’s oil and gas, global pleasure craft and Asian commercial marine markets. The recent set of planned restricting measures are expected to save about $4.3 million annually, in addition to $6 million of annual savings announced in the fiscal 2015 fourth quarter, according to the company.

“We understand the actions we announced today and in the fourth quarter are difficult for our employees and communities,” said John H. Batten, president and chief executive officer, in a statement. “But given the uncertainty in many of our traditional markets, these cost reduction activities are necessary. We will continue to evaluate additional activities to align our global staffing and manufacturing capacity with current and forecasted market demand.”

Twin Disc, Inc. designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment.