Invacare reduces headcounts
By HME News Staff
Updated 8:48 AM CDT, Fri May 6, 2022
ELYRIA, Ohio – Invacare is streamlining its operations in the United States, primarily related to headcount reductions, to improve its cost structure, according to a May 4 filing with the U.S. Securities and Exchange Commission.
As a result, the company anticipates annual pre-tax savings of about $2.8 million, with about $1.9 million to be realized in 2022. It will incur restructuring charges of $800,000 and expects to make cash payments in the same amount, primarily related to severance costs, which will be paid out over the second and third quarters.
In Europe in the first quarter of 2022, the expected annual pre-tax savings is approximately $3 million, with approximately $1.7 million to be realized in the second half of 2022. In North America, the expected annual pre-tax savings is approximately $2.7 million, with approximately $2.1 million to be realized over the remainder of 2022. As a result, the company incurred total restructuring charges in the first quarter of approximately $3.8 million and expects to make cash payments in the same amount, with the majority of the severance costs related to these actions to be paid in 2022.
In aggregate, Invacare’s strategic actions announced and implemented to date will result in approximately $4.6 million of restructuring costs and cash expenditures, with the expected pre-tax benefit of approximately $5.7 million in cost savings in 2022, and approximately $8.7 million in annual pre-tax cost savings thereafter.
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