The company announced this week that it would cut about 150 employees and 40 temps from its North American home medical equipment and Asia/Pacific institutional products divisions. The new terminations join the approximately 70 layoffs tied to the closing of the company’s London, Canada, manufacturing facility earlier this year.
Leadership pointed to its recent financial reports and continued struggles as rationale for the layoffs, saying that the restructuring should help the company get back on its feet.
"’Invacare is committed to improving free cash flow and restoring profitability in the North America/HME and Asia/Pacific businesses," interim president & CEO Robert Gudbranson said in prepared remarks. "While the decision to downsize our workforce is extremely difficult, it is a necessary step toward achieving these objectives in light of our financial results for the 1st 6 months of 2014 and the slow sales start to the 3rd quarter."
Gudbranson took over just last month after Gerald Blouch announced plans to retire.
IVC shares dropped 1.8% today, trading at $15.48 as of about 1:45 p.m. EST. The stock has lost 33% since the start of the year.