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Invacare Corporation
today announced that due to a decline in
production, the Company has initiated an immediate workforce reduction at its
Taylor Street manufacturing facility in Elyria, Ohio. The expected decline in
production results principally from the Company's previously announced consent
decree of injunction with the United States Food and Drug Administration
(FDA), which was approved late last week by the United States District Court
for the Northern District of Ohio.
Invacare currently employs 365 hourly manufacturing associates at its Taylor
Street facility in Elyria, Ohio. As a result of the workforce realignment, 222
associates will remain in their current roles or be reassigned to other roles
across the Elyria campus. The remaining 143 associates will be laid off. For
those associates who have been laid off, Invacare will offer 60 days
continuance of pay and benefits.
Due to the realignment, the Company expects to incur one-time restructuring
charges not to exceed $1.25 million on a pre-tax basis.
``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 chief executive officer. ``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.''
After the reduction, Invacare will continue to employ approximately 1,050
associates in Northeastern Ohio and approximately 6,050 associates worldwide.
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