Throughout this crisis our company’s first priority is the health and wellbeing of you and your family. We continue to take extraordinary steps to ensure our facilities are clean, secure and safe for those at work. And for those that can work from home, we are requiring that you do.
As the COVID-19 virus continues to spread globally, we’ve all seen the dramatic impact on people around the world – our family, friends and co-workers. It’s also greatly affected the global economy. This volatility and uncertainty extends to our commercial aerospace customers. Global air traffic volumes have dropped severely, leading airlines to cancel flights and ground planes.
This is having a direct and immediate impact on UTC’s commercial aerospace businesses, requiring us to take multiple steps to aggressively reduce costs. Actions we are taking immediately include:
- Suspension of discretionary spending, including discretionary engineering and development programs
- A hiring freeze
- Significant reduction in capital investment in buildings and facilities, excluding safety-related investments
- Deferral of annual merit increases for executive and salaried employees, consistent with local practice
These steps are difficult but necessary to protect UTC’s ability to weather this rapidly evolving crisis and are similar to the steps we took in past crises, representing a global shared sacrifice in the face of these challenging times.
Despite the difficult situation, we continue to stand ready to serve our nation and assist with the supply and manufacture of medical goods that are in need, including offering our 3D printing capability and access to our workforce.
We will continue to carefully monitor the situation and communicate openly as we evolve our response. These actions are the first step in what we expect will likely be a difficult journey.
This is a tough time for us all, and we remain committed to the safety and health of our employees, while supporting our customers and business through this crisis. I thank each and every one of you for your dedication and commitment during this trying time.
Be well and stay safe,