Thirty more layoffs are intended for those sites on or about May 31.The reduction in force is being taken “due to a dramatic and sudden reduction in purchase orders from McSwain’s largest customer,” Watson wrote in the letter.
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Founded in 1972, McSwain Manufacturing Corporation manufactures and supplies precision machine parts and components for gas turbine, computer technology and aerospace industries.
In late April, company representatives met with that customers to discuss and understand its most recent forecast reduction, Watson said.
“This will result in an immediate reduction of over 30 percent in revenue, which is in addition to a nearly 5 percent reduction that the customer made on March 1, 2017,” he said. “Prior notice was not practical due to the customer’s unforseen production changes, which were outside of McSwain’s control.”
It is anticipated that all employment separations will be permanent and will occur in three phases: the one that occurred on May 4, and two others, one on or about June 1, and the other on June 30, Watson said.
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