Retractable Technologies (RVP) reports that it has reduced its workforce by approximately 7%. The reduction is expected to save an estimated $1.6M in annual wages and benefits, or approximately 7.8% of total estimated workforce costs. The expected savings is offset by one-time separation payments of approximately $300,000 to the affected workers. Approximately 72% of the targeted payroll reduction affects general and administrative functions, with the remainder coming from manufacturing or manufacturing support positions. The move comes as the company continues to allocate more of its resources to increase its U.S. manufacturing capabilities and reduce reliance on products produced in China. While contract manufacturers in China have historically produced most of the products the company sells, the material financial impact of tariffs on imports from China eliminates the company’s ability to continue the practice. As a result, the company will work to minimize its exposure to the tariffs and strategically import only those products which it cannot make domestically and rely on its Little Elm facility to produce the majority of its products. The company is unable to predict future U.S. trade policy, or the potential impact it may have on the company’s ability to import products from China or other countries.