IKONICS Announces Furloughs and Additional Cost Cutting Measures

Rhea-AI Summary

IKONICS Corporation (Nasdaq: IKNX) announced a significant furlough of approximately 40% of its 81 employees until July 31, 2020, in response to COVID-19 impacts. This decision, communicated on June 25, 2020, ensures furloughed employees retain their benefits. The company also suspended contributions to its 401(k) plan. In addition, IKONICS has implemented measures such as reducing officer and board compensation to mitigate lost revenue, as emphasized by CEO Glenn Sandgren, who stated the actions are painful yet necessary.

Positive

• Furloughing 40% of the workforce allows for cost reduction amid revenue loss.
• Employees will maintain their benefits during the furlough period.

Negative

• Suspension of 401(k) contributions may affect employee morale and financial security.
• Furlough indicates severe impact on business operations due to COVID-19.

DULUTH, Minn., June 26, 2020 (GLOBE NEWSWIRE) -- IKONICS Corporation (the “Company”) (Nasdaq:IKNX), a Duluth-based imaging technology company, announced it will furlough approximately 40% of its 81 employee workforce until July 31, 2020. Employees were notified on June 25^th, 2020 and furloughed employees will continue to receive benefits.  In addition to the furlough, IKONICS is suspending the company’s contribution to its 401(k) retirement plan.  These measures, together with previous actions that included a reduction of officer and board compensation, and the elimination of all non-essential expenditures will help to partially offset the impact of lost revenue from the COVID-19 pandemic.

Glenn Sandgren, IKONICS CEO noted, “This is a painful but necessary action that impacts all of our IKONICS family.  We are working diligently to put the business on a firm footing, allowing us to bring back these team members as soon as economic conditions allow.”

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11%; width:11%; min-width:11%;">News Contact:	89%; width:89%; min-width:89%;">Glenn Sandgren
	Chief Executive Officer
	(218) 628-2217

 
 
                  

FAQ

What recent actions has IKONICS taken due to COVID-19?

IKONICS has furloughed 40% of its workforce and suspended 401(k) contributions.

What percentage of employees at IKONICS were furloughed?

Approximately 40% of IKONICS' 81 employees were furloughed.

Until when are IKONICS employees furloughed?

The furlough period is set until July 31, 2020.

What measures did IKONICS take to offset lost revenue?

IKONICS reduced officer and board compensation and eliminated non-essential expenditures.

What benefits will furloughed IKONICS employees continue to receive?

Furloughed employees will continue to receive their benefits during the furlough.