Willdan Group, the most valuable public company based in Anaheim, said it will furlough 300 workers, or about 21% of its workforce, to save cash during the coronavirus pandemic.
“Due to the rapidly evolving nature and continued uncertainty surrounding COVID-19, we are taking steps to maintain the safety of our employees, reduce costs, preserve liquidity and improve our financial flexibility,” Chief Executive Thomas Brisbin said in a statement.
The company’s Direct Install programs, where major utilities have hired Willdan to help small businesses in their territory save electricity, have been more severely affected, mainly due to COVID-19 restrictions implemented by the governors of New York and California. The Direct Install business accounted for about 40% of Willdan’s 2019 gross revenue.
The company (Nasdaq: WLDN) employed 1,451 as of Dec. 31. Willdan shares have fallen about 46% since Feb. 20 to $20.34 and a $235 million market cap.
The engineering and consulting firm is freezing all non-critical spending for travel, capital expenditures and other discretionary expenses.
It’s also reducing wages ranging from no cuts for lower salary bands up to 75% for senior management, and suspended cash fees for its board of directors.
Willdan said its financial position “remains strong,” citing $16 million of net cash balance and $56 million in borrowing capacity as of April 14.
It also withdrew its 2020 guidance and will provide an update on its first quarter earnings call scheduled for May 7.
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