Invacare Corp announced a restructuring initiative that is expected to generate $14 to $15 million in annualized pre-tax savings when fully instituted in 2015. The initiative includes a reduction to the company’s workforce of approximately 150 associates and 40 temporary associates from the North America/Home Medical Equipment, Institutional Products Group and Asia/Pacific segments.
“Invacare is committed to improving free cash flow and restoring profitability in the North America/HME and Asia/Pacific businesses. 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 first six months of 2014 and the slow sales start to the third quarter,” sayas Robert K. Gudbranson, Invacare interim president and CEO, in a release. “All of our associates, including those affected by this restructuring, have been committed to Invacare. As always, we will provide support to our impacted associates during this transition period.”
Due to the realignment, the company expects to incur restructuring charges not to exceed $6 million on a pre-tax basis.
