The workforce reduction will take effect immediately and is due to a decline in production, according to the statement.
“While we regret having to take this step, we recognize the need to align our workforce with our production volume,” said Gerry Blouch, Invacare president and CEO. “We value and respect the hard work that our associates demonstrate on a day-to-day basis and we will provide assistance to those affected to help them with the transition. We remain committed to achieving full regulatory compliance and to resuming full operations at Taylor Street as quickly as possible. Over the past year, we have made significant investments of time, people and resources to achieve regulatory compliance and make Invacare’s Taylor Street manufacturing facility an even stronger operation.”
The expected decline in production comes as a result of the consent decree of injunction Invacare forged with the U.S. Food and Drug Administration (FDA), which was approved late last week by the U.S District Court for the Northern District of Ohio.
Invacare currently employs 365 hourly manufacturing associates at the Taylor Street facility.
The remaining 222 employees will remain in their current roles or be reassigned to other roles in Elyria, where the international company is headquartered. The 143 employees that learned they are out of a job will receive 60 days of pay and benefits as part of a severance package.
Due to the realignment, Invacare expects to incur one-time restructuring charges not to exceed $1.25 million on a pre-tax basis.
After the reduction, Invacare will continue to employ approximately 1,050 employees in northeastern Ohio and approximately 6,050 employees worldwide.
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