Retractable Technologies reduces workforce by 16%

Retractable Technologies (RVP) reported that it has reduced its workforce by approximately 16%. The reduction is expected to save an estimated $2.2M in annual wages and employment benefits, or approximately 13% of total estimated workforce costs. The expected savings are offset by estimated one-time separation payments of approximately $122,000 to the affected workers. Approximately 58% of the targeted payroll reduction affects manufacturing or manufacturing support positions and the remainder of the reductions affects sales and sales support roles. The company said, “The move comes as the Company continues to strengthen its domestic production capabilities and increase manufacturing efficiencies, reducing its reliance on importing products from its contract manufacturers in China. While contract manufacturers in China have historically produced most of the products the Company sells, the financial impact of tariffs on imports from China has caused the Company to increase its domestic production where practical in order to mitigate the cost of importing. While the increase in domestic manufacturing lessens the negative financial impact of tariffs, the Company is still reliant on Chinese imports for products we are unable to produce with our current manufacturing equipment.”