Invacare (NYSE:IVC) said yesterday that it plans to lay off about 2.4% of its workforce, with all of the cuts coming in North America.
The Elyria, Ohio-based company said it plans to pare 110 positions, aiming to create $8.5 million in annual pre-tax savings as part of a “strategic transformation.” Invacare reported 4,600 employees worldwide as of Dec. 31, 2016.
“Invacare is making good progress in its North America transformation. 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,” chairman, president & CEO Matthew Monaghan said in prepared remarks. “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.”
The move is expected to mean pre-tax restructuring charges of $2.6 million during the fourth quarter, Invacare said.
It follows the February announcement of 100 layoffs and another in May detailing 50 more in North America. In November 2016, Invacare announced it was restructuring its North American home medical equipment and European segments, eliminating 34 positions.
