Retractable Technologies this week announced that it has reduced its workforce by 16% due to the completion of its facility expansion efforts — and the completion of U.S. government orders related to COVID-19 vaccines.
The staff reduction will affect the Little Elm, Texas-based company’s production, operations and logistics departments. Retractable Technologies said in an SEC filing that there will be an overall annualized savings of approximately $2.1 million, or 13% in annual payroll expense. Separation costs are expected to be approximately $200,000.
As of March 11, the company had 235 employees, according to its most recent annual report.
Retractable Technologies, which makes syringes, blood collection and IV catheter devices, expects that it will be able to maintain its domestic production after the reduction and have “significantly enhanced” domestic production capacity when it completed its expansion efforts.
The company logged $188.4 million in fiscal year 2021. In Q1 2022, it reported $44.7 million in sales, a 10% decrease from the year prior when it reported just over $50 million in sales.
Shares in RVP were up 3.52% to $4.85 apiece in mid-morning trading.