Retractable Technologies, a manufacturer of safety medical products, has announced a reduction in its workforce as part of a cost-saving initiative. The move aims to lower overhead expenses and increase domestic production capabilities. The company cited the financial impact of tariffs as a reason to increase domestic production.
What happened
Retractable Technologies is implementing a workforce reduction to cut costs and shift production. The company is aiming to reduce overhead by $2.2 million annually.
How many employees affected
Approximately 36 positions are being eliminated, representing about 16% of the company's workforce. Of those affected, 58% are in manufacturing or manufacturing support roles, with the remainder in sales and support.
Why layoffs happened
The layoffs are part of a cost-saving measure to offset the financial impact of tariffs on imports from China and to support increased domestic production. The company will spend an estimated $122,000 on one-time separation payments to affected workers.
Company background
Retractable Technologies, based in Little Elm, Texas, produces safety medical products, including the VanishPoint and Patient Safe safety medical products, and the EasyPoint needle. These products are designed to prevent needlestick injuries.
Industry impact
The medical device industry is seeing some workforce adjustments. Retractable Technologies' move follows similar announcements from other companies in the sector, such as Integra LifeSciences and Medtronic.
What's next
Retractable Technologies plans to continue increasing its domestic manufacturing capabilities. The company will still rely on Chinese imports for products it cannot produce with its current equipment.