Tool manufacturer Stanley Black & Decker on Wednesday outlined major spending cuts and additional staff reductions in response to the coronavirus pandemic.
The company said it began a "comprehensive cost reduction and efficiency program," including the elimination of $1.7 billion in indirect spending and the reduction of "non-essential" staffing — while ensuring that workers would be in place as the market recovers.
Merger and acquisition activity will be suspended, and capital spending will be reduced as well. Stanley officials also indicated the company hopes to capture "the significant raw material deflation opportunity that has recently emerged."
“We are in a strong position as we face today's challenges and are taking the necessary actions now to protect our employees and the business while positioning the company to thrive into the future," President and CEO James Loree said in a statement.
Company officials added that Stanley has strong credit ratings, substantial cash-on-hand, $3 billion of revolving credit facilities and the ability to generate additional cash proceeds of $750 million in the second quarter.
Stanley last year announced a plan to reduce headcount and its production footprint amid slowing demand. The company acquired fastener and component maker CAM Aerospace for up to $1.5 billion earlier this year.