Invacare Corporation (NYSE: IVC) announced Thursday that due to a decline in production, the Company has initiated an immediate workforce reduction at its Taylor Street manufacturing facility in Elyria.
The expected decline in production results principally from the Company's previously announced consent decree of injunction with the United States Food and Drug Administration (FDA), which was approved late last week by the United States District Court for the Northern District of Ohio.
Invacare currently employs 365 hourly manufacturing associates at its Taylor Street facility in Elyria. As a result of the workforce realignment, 222 associates will remain in their current roles or be reassigned to other roles across the Elyria campus.
The remaining 143 associates will be laid off. For those associates who have been laid off, Invacare will offer 60 days continuance of pay and benefits.
Due to the realignment, the Company expects to incur one-time restructuring charges not to exceed $1.25 million on a pre-tax basis.
"While we regret having to take this step, we recognize the need to align our workforce with our production volume,'' said Gerry Blouch, Invacare president and chief executive officer. "We value and respect the hard work that our associates demonstrate on a day-to-day basis and we will provide assistance to those affected to help them with the transition. We remain committed to achieving full regulatory compliance and to resuming full operations at Taylor Street as quickly as possible. Over the past year, we have made significant investments of time, people and resources to achieve regulatory compliance and make Invacare's Taylor Street manufacturing facility an even stronger operation.''
After the reduction, Invacare will continue to employ approximately 1,050 associates in Northeastern Ohio and approximately 6,050 associates worldwide.
Invacare Corporation (NYSE:IVC), headquartered in Elyria, Ohio, is the global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. The Company has approximately 6,050 associates and markets its products in approximately 80 countries around the world.