Invacare (NYSE:IVC) said yesterday that it plans to reduce its workforce by 50 individuals in Europe as part of its cost reduction efforts.
The Elyria, Ohio-based company said that it has already informed all affected employees and that it expects to incur pre-tax cash restructuring charges of approximately $900,000, which will be expensed in the fourth quarter of 2018 in its European segment.
The move was part of a restructuring plan with a goal of achieving $12.5 million in operating margin improvement from cost reductions, specifically in Europe, according to the filing. Once the reduction is complete, Invacare said that it expects to generate $2.5 million in annualized pre-tax savings.
So far, Invacare said that it has enacted cost reductions it expects will result in annualized pre-tax savings of $5.8 million.
Cash payments related to the restructuring are expected to be maid in the fourth quarter of this year through to the second quarter of next year, according to an SEC filing.
Last December, Invacare said that it planned to lay off about 2.4% of its workforce, with all of the cuts coming in North America.