(By Balaseshan) Invacare Corp. (NYSE: IVC), a maker of medical equipments used in home, said it has initiated an immediate workforce reduction of 143 associates at its Taylor Street manufacturing facility in Elyria, Ohio due to a decline in production.
The expected decline in production results principally from the company's consent decree of injunction with the U.S. Food and Drug Administration (FDA), which was approved late last week by the U.S. District Court for the Northern District of Ohio.
Invacare currently employs 365 hourly manufacturing associates at its Taylor Street facility in Elyria, Ohio. 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.
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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. 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," said Gerry Blouch, Invacare president and chief executive officer.
After the reduction, Invacare will continue to employ approximately 1,050 associates in Northeastern Ohio and approximately 6,050 associates worldwide.
IVC is trading down 0.98% at $16.15 on Thursday. The stock has been trading between $12.87 and $19.25 for the past 52 weeks.