Indianapolis-based Allison Transmission Holdings Inc. (NYSE: ALSN) has announced plans to temporarily suspend production at some of its manufacturing facilities. The manufacturer says the move, effective Monday, is the result of disruptions caused by the COVID-19 pandemic.
Allison says it has seen disruptions to its supply chain, changes in customer demand and “a weaker outlook for the global economy.”
The company did not specify which facilities would be shut down, but said it will continue to monitor the situation and adjust production at other facilities as needed. It is also not know precisely how many employees will be affected.
A spokesperson for Allison Transmission released the following statement to Inside INdiana Business:
“Allison Transmission has informed its workforce that due to reduction in supply availability, decreased customer demand and unforeseen circumstances outside of our control, difficult but necessary organizational changes including layoffs are necessary. The intent is a temporary layoff within our production workforce where the affected employees will not work but the formal employment relationship remains in place. This will continue to be assessed as the constantly changing market landscape and its impact is unknown at this time.
Allison Transmission will slow and temporarily suspend production in certain facilities in an effort to rebalance the work based upon component supply and customer demand. While the quantity of employees onsite is reduced, Allison will continue its enhanced preventive measures to reduce the potential spread of the COVID-19 virus. This will be in addition to extensive social distancing, travel and sanitization protocols that have already been implemented to ensure the safety and welfare of the Allison workforce across the Globe.:
Allison is also withdrawing its previously-announced guidance for the fiscal year as a result of the pandemic.