Invacare reduces workforce
By HME News Staff
Updated Fri December 8, 2017
ELYRIA, Ohio - Invacare will reduce its workforce by about 110 employees to generate $8.5 million in pre-tax savings, the company announced Dec. 7.
The move, which affects employees in North America, is part of a multi-year strategic plan to transforms Invacare into a more clinically focused company, says Matthew Monaghan, chairman, president and CEO.
“This reduction in force, while difficult, is an essential part of the second phase of our transformation toward becoming a more sustainably profitable, growing business," he said. "We are realigning our North America infrastructure with our new sales levels and finding more efficient ways to do business. Through this action, we are empowering employees to drive simplification and enhance customer engagement. We expect the result to lead to improved cost-effectiveness as we pursue growth.”
In November, Invacare reported net sales of $79.5 million for the third quarter of 2017, a 2.3% increase from the prior quarter.
Due to the reduction, Invacare expects to incur restructuring charges of about $2.6 million on a pre-tax basis in the fourth quarter of 2017.
This latest round of lay-offs comes less than a year after the company announced in January that it would reduce its workforce by approximately 100 employees.
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