Barnes Group Announces Restructuring
The company, whose portfolio companies include Synventive, Thermoplay, männer, Foboha, Priamus and Gammaflux, will cut approximately 400 jobs globally.
Barnes Group, which built out a Molding Solutions business via the acquisition of Synventive, Thermoplay, männer, Foboha, Priamus and Gammaflux, announced a global restructuring in the face of the “unprecedented macroeconomic disruption brought on by the global COVID-19 pandemic.”
William Pitts, director of investor relations for Barnes, told Plastics Technology that the restructuring, which the company estimates will generate annual savings of $30 million, will impact roughly 400 workers across Barnes Group’s global workforce of 5400—roughly an 8% reduction in headcount.
In terms of where the cuts will come, Pitts said jobs will be eliminated in corporate functions, the Aerospace Segment, and the Industrial Segment, which includes Molding Solutions. “Specifics about which businesses have not been provided, but the impact will span our global workforce,” Pitts said. The restructuring doesn’t include any closure of manufacturing facilities, but Pitts said that the reduction in workforce will lower capacity at some locations.
In its first quarter results report released on April 24, Barnes said sales were down 12% year over year to $331 million. The Industrial segment’s sales were down 18% to $199.1 million. In that report, Barnes said that entering 2020, automotive, tool/die and packaging end markets were experiencing lingering softness—then coronavirus hit. “With the onset of the COVID-19 outbreak, sales pressure increased first in China, then moved to Europe, and, towards the end of the quarter, North America. While the China market is demonstrating signs of recovery, Europe and North America presently remain challenged.”
Barnes will release second quarter performance data on July 28.
Barnes Group’s K 2019 booth included the “Reverse Cube” mold displayed by portfolio company Foboha.
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