Sparton Corp. CEO Cary Wood said in a news release that the firm was also freezing its defined benefit plan and that both actions would be effective April 1, 2009.
“We have taken these actions as necessary additional steps in the company’s return to profitability,” said Wood, in the release. “As many companies are doing during these difficult times, we are reviewing all avenues to reduce costs and stabilize our financial resources. We, therefore, made this decision after a significant amount of discussion. Our intention is to resume participation as appropriate as soon as it is financially prudent to do so.”
According to news reports, Sparton cut its workforce earlier this month by 6%. The company received word from the New York Stock Exchange that it could remain on the exchange even though its market capitalization was below $75 million over a 30-day period.
Earlier this week brought similar announcements from the Atlanta Conventions & Visitors Bureau (see “Slumping Convention Business Cuts into 401(k) Match“) and Harrah’s Entertainment (see “Another Casino Operator Craps out on Match“).