Kennametal is implementing strategic initiatives, including job cuts

(RTTNews) – Kennametal Inc . (KMT) revealed in a regulatory filing that it has launched several strategic actions to boost the company’s long-term competitiveness and deliver on commitments made at the heart of its investor day on September 8, 2023. The actions include plans to close three to five flowers by the end of fiscal 2027.

Inside the Steel Reducing segment, the company plans to close its facility in Greenfield, MA and consolidate two facilities near Barcelona, ​​Spain into a single, modernized facility. Greenfield operations are expected to end in April 2025, and plant closures are expected to be largely completed by December 31, 2025.

The consolidation of the Barcelona facilities is expected to be largely completed by June 30, 2025.

As successful as it was in combating weaker market conditions, namely in Europe, the company launched a global effort to reduce structural costs by reducing the actual number of employees. The combined measures are expected to generate approximately $15 million in annual pretax financial savings by the end of fiscal year 2025.

The Company expects to incur approximately $25 million in pre-tax costs in implementing these measures, including approximately $10 million in cash-related costs, $10 million in severance-related cash expenditures and $5 million in non-cash costs.

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