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March 25, 2020

Hamden’s TransAct Technologies announces furloughs, salary reductions amid coronavirus ‘uncertainty’

By Greg Bordonaro

Hamden transaction-hardware vendor TransAct Technologies Inc. said Tuesday it’s scaling back expansion plans and cutting $1.75 million in operating expenses in response to the “unprecedented uncertainty related to the impact the novel coronavirus pandemic is having on the food service and casino industries,” which are two key markets for the company.

TransAct, which makes printing and back-of-house automation systems for the gaming and food industries, respectively, as well as point-of-sale and other technologies, said its cost-cutting moves include:

  • A 10% across the board salary reduction for all salaried, non-commissioned employees;
  • A reduction in sales commissions for all commissioned employees;
  • A 10% reduction of cash retainer fees for all non-employee directors;
  • Furloughing approximately 10% of its workforce;
  • Eliminating all discretionary spending such as trade shows, marketing and promotional activities, travel expenses, training, etc., wherever possible.

TransAct said its original growth plan for 2020 called for increasing operating expenses to accelerate growth of its food service technology market. It had been hiring people late in 2019 and the early part of this year, with other planned increases in product development and other additional marketing initiatives.

That’s off the table for now, the company said.

“We are taking meaningful action to mitigate the impact of the novel coronavirus (COVID-19) on our financial condition and successfully navigate the uncertainty ahead,” said Bart Shuldman, TransAct’s chairman and CEO.

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