Invacare, a manufacturer of wheelchairs, bariatric equipment, disability scooters, respiratory products, and other homecare products, announced that 150 employees would be laid off at its local production facility. According to a press release by the company, the layoffs are in direct response to lower production levels.

Declines in production are due to a recent injunction against the company by the United States Food and Drug Administration. Due to regulatory compliance issues, the FDA issued an injunction that limits production at its Elyria facility.

The recent layoffs represent approximately 40 percent of the company’s total workforce at the Ohio facility. After the layoffs, only 222 employees will remain at the company. The company has stated that it may place remaining employees in different roles at the facility.

Gerry Blouch is CEO and president of Invacare. In prepared remarks, he said, "While we regret having to take this step, we recognize the need to align our workforce with our production volume,” He continued, "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 FDA injunction also mandates that the company limit production at another facility until it becomes fully compliant with FDA regulatory guidelines. As of now, the company has not announced layoffs at its other impacted facility.

References

http://newsroom.invacare.com/press-release/2012/invacare-corporation-ann...