20 layed off today, missed TransDigm profit target by 10%. Finance, Admin, Inspection, Engineering Coordinator, Production Control (2), Test Engineer, IT, Mfg Engineer (2), Quality Engineer, Mech Engineer, Machinist, Matl Handler (2), Machinist, Assembly Tech (2), Cust Service, Tool Maker.
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Korry continues to have layoffs 5/1/2020
This is the second layoff notice since the takeover of Transdigm and, from the looks of the trend pattern, the plan may be to downsize in small, incremental numbers over irregular frequencies to avoid triggering the Warn Act and having to pay out. Watch the TDG Quarterly Announcements. TD has been announcing where they intend to make cuts and consolidations along with where they intend to allocate capital resources.
TDG announced last year that they identified certain sectors and divisions of ESL that they felt were little to no value to them. That was Phase I of the sell-off and recovery plan. They later stated they were going to announce where they intended to put their money, where they were going to consolidate and what else they were planning on selling off.
TDG recently finalized the sale of ESL's Interface Technologies for ~190M so, there's still a ways to go towards recovering 1B dollars from the 4B spent. This recovery planning, was a part of the business plan presented to lenders. It may have been necessary to obtain the loan - I don't know but, we do know per TDG that they were overextended and needed to go out for a loan so, this is why I presume this was done up front as a means to ensure payback to lenders.
I would be watching TDG's quarterly report outs and call in to those conference calls and listen carefully for clues on what their future plans are with regards to consolidation, Phase II of the recovery plan and where they intend to allocate capital resources. That's where they'll announce this type of thing - in those reports. Now, interestingly enough, to my knowledge TDG didn't disclose a whole lot per their 3rd and 4th quarter as previously stated was going to occur in Q2 so, watch for Q1 of 2020 for that info to be announced.
Today's all hands meeting was a joke! Commander of Chief talks about the "Plan"...... Pal, the "Plan" you envision is not working. "Sorry, Charlie"