ELYRIA – Invacare Corporation, the Elyria-based maker of wheelchairs, mobility scooters and other medical equipment, confirmed Friday that it has laid off 50 employees in a round of cost-cutting measures.
Company spokesperson Lois Lee said the company filed a Form 8-K, a document that notifies shareholders and regulators with the Securities and Exchange Commission of changes within a publicly traded company, following the close of financial markets Thursday.
Lee said the move was part of Invacare's plan to cut up to $25 million in costs in its North American operations.
"We will take out about that much in North America and not all of it will be employee-related, that's just a piece of it," she said.
In the filing, Invacare said it "implemented a reduction in its workforce of approximately 50 associates in North America as the company is realigning its North America infrastructure to drive improved cost effectiveness and leverage."
Invacare told the SEC the layoffs are expected to cost $1.2 million, mostly in severance payments to employees and "transition assistance" that will be added to its expenses for the fourth quarter of this year. The layoffs are expected to save the company $5 million before taxes, according to the filing.
Lee said the layoffs primarily affected corporate headquarters, on Invacare Way off Taylor Street, though "there were some salespeople and others scattered" throughout other locations.
"We continue to transform the business, and making progress toward our goals, and sometimes that has involved" cutting jobs, Lee said.
The company has been operating "in a loss position" for the last several years, she said. The layoffs are "not particularly related" to third-quarter earnings, Lee said.
She said Invacare will release its third-quarter financial results at the close of markets on Monday, with a conference call and live webcast for financial analysts planned for 8:30 a.m. Tuesday. The webcast will be available at www.invacare.com 24 hours after the call is completed, the company announced.
The most recent layoffs at Invacare were in December 2017 when 110 employees were let go, according to Chronicle-Telegram archives.
Along with mobility products, the company also manufactures breathing apparatus and acute care items.