Yesterday’s announcement concluded that after the plant closes at the end of 2020, the manufacturing and distribution activities that are currently conducted there will be performed at other locations within the company or by third parties.
The decision is expected to impact approximately 240 of Invacare’s associates in Germany, as the company expects to incur pre-tax cash restructuring targets relating to severance and transition assistance, along with other closure-related costs.
Invacare said severance and transition assistance packages are subject to applicable works council and consultative processes, so the company is unable to estimate the amount and timing of its restructuring costs until a later date.
In July, the Elyria, Ohio-based wheelchair maker said it laid off 75 workers, or about 1.8% of its workforce, in North America and Europe; as of Dec. 31, 2018, the company had 4,200 employees. In November 2018, Invacare announced that it planned to reduce its workforce by 50 individuals in Europe as part of its cost reduction efforts.