Kennametal Undertakes Strategic Initiatives, Including Job Cuts

(RTTNews) - Kennametal Inc. (KMT) disclosed in a regulatory filing that it has initiated several strategic actions to boost the company's long-term competitiveness and fulfill commitments made during its Investor Day on September 8, 2023. The actions include plans to close three to five plants by the end of Fiscal 2027.

Within the Metal Cutting segment, the company intends to shut down its Greenfield, MA facility and merge two facilities near Barcelona, Spain into a single, modernized facility. The operations in Greenfield are expected to cease in April 2025, with the plant closure expected to be substantially complete by December 31, 2025.

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

In addition, to counteract weaker market conditions, particularly in Europe, the company has initiated a global effort to reduce structural costs by reducing professional headcount. The combined measures are projected to deliver approximately $15 million in annualized pre-tax savings by the end of Fiscal 2025.

The company expects to incur approximately $25 million in pre-tax charges in executing these actions, including around $10 million for cash-related facilities charges, $10 million for severance-related cash expenditures, and $5 million for non-cash facilities charges.