The Elyria, Ohio-based company said it anticipated pre-tax restructuring charges and severance costs of approximately $1 million, which would be expensed for its 4th quarter.
“Adjustments are being made across the board. These are never easy decisions to make, but we try to make the process as smooth as possible with transition assistance. That includes severance and benefits packages, and outplacement services,” Invacare spokesperson Lara Mahoney told Ohio’s Chronicle Telegram in an interview.
Thirty employees have reportedly already been laid off, though Mahoney declined discussing specific positions being eliminated, according to the Chronicle Telegram. The company said it expects payments from the restructuring to be made from October this year through June next year.
The restructuring will bring in an estimated $2.7 million in annualized pre-tax savings once it is completed in 2016, Invacare said. The company is slated to reinvest the savings from the restructuring into “areas of growth.”
In July, Invacare said it sold its Invacare Outcomes Management and Dynamic Medical Systems medical device rental businesses for an estimated $15.5 million.
The terms of the sale include a 6-month period in which Invacare will sell products to the purchaser of the rental businesses, and certain 3-year non-competition obligations towards the rental subsidiaries and their employees, the company said.