Invacare adjusts workforce
ELYRIA, Ohio – Invacare continues to make adjustments to its workforce, announcing last week that it has laid off employees in some areas but plans to hire employees in others.
The company has laid off 30 employees, 20 at its Elyria North Ridgeville campus. Lara Mahoney, director of investor relations and corporate communications, declined to go into specifics but said the employees were salaried.
“It’s something that continually needs adjustment,” she said. “We’re looking at where we need to realign things to make other investments.”
In 2014, Invacare laid off 190 employees in a move that saves the company about $15 million annually on a pre-tax basis. The employees, 150 salaried and 40 temps, worked across three divisions, including North America/HME. About 60 worked at the Elyria North Ridgeville campus.
Mahoney says Invacare plans to hire employees in sales and new product development, but she declined to go into how many and when. In a recent earnings call, Matt Monaghan, Invacare’s president, CEO and chairman, has discussed plans to revamp the company’s sales team.
“We’re making investments in our sales force and increasing their clinical competency,” Mahoney said.
The adjustments to its workforce are a key part of Invacare’s strategy of restoring profitability, Mahoney says.
“This is all part of the turnaround story,” she said.
Invacare has been limited in what it can manufacture and sell since 2012, when it entered a consent decree with the U.S. Food and Drug Administration. The company has completed two of three required audits to lift the decree.
On whether Invacare will ramp up hiring once the decree has been lifted, Mahoney said, “We’re not waiting; we’re making investments today.”