Invacare continues restructuring, lays off 100

Invacare (NYSE:IVC) said yesterday it cut 100 employees from its workforce as the company continues to restructure.

The Elyria, Ohio-based company said it expects to incur restructuring charges of approximately $2.2 million with the layoffs, and that those costs would be expensed in the 1st quarter of 2017. Cash payments related to the restructuring will be made from Jan. to Sept. of this year.

The reduction is expected to generate an additional $6.6 million in annualized pre-tax savings, according to an SEC filing from the company.

Last November, Inacare announced it was restructuring its North American home medical equipment and European segments, eliminating 34 positions.

The company said the restructuring would bring in an estimated $2.7 million in annualized pre-tax savings once it is completed in 2016, Invacare said. The company is slated to reinvest the savings from the restructuring into “areas of growth.”

In July, Invacare said it sold its Invacare Outcomes Management and Dynamic Medical Systems medical device rental businesses for an estimated $15.5 million.

The terms of the sale include a 6-month period in which Invacare will sell products to the purchaser of the rental businesses, and certain 3-year non-competition obligations towards the rental subsidiaries and their employees, the company said.

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