IKONICS Corporation (IKNX), a Duluth-based imaging technology company, announced it will furlough approximately 40 percent of its 81 employee workforce until July 31. Employees were notified on Thursday 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.
“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,” Glenn Sandgren, IKONICS CEO, said in a news release.