Redundancies, senior appointments and new launches as Invacare transforms North American business
Invacare has announced significant changes to three key areas of its business, including laying off 75 members of staff, as it continues to reshape its structure and offering as part of its enhanced transformation and growth plan.
A multinational supplier of a wide range of healthcare equipment and one of the largest mobility suppliers in the industry, Invacare has struggled in North America over recent years, largely down to its respiratory product segment.
In May 2019, the company revealed in its Q1 results that net sales across the entire business declined 5.8 percent to $223.4 million – down from $237.1 in 2018 – however, reported growth across its mobility and seating segment in both North America and Europe, alongside reduced operating costs.
Matthew E. Monaghan, chairman, president and chief executive officer, said in May that the company would continue to “simplify the business, reduce overhead costs and ultimately result in improved financial results.”
Workforce reduction lowers overheads
As part of its transformation actions, Invacare has made approximately 75 employees redundant in both North America and Europe, with the company highlighting that it had realigned the organisation to reduce complexity.
According to the multinational manufacturer, the move will cost an estimated $3.1million across the second and third quarter of 2019, which will mostly be related to severance and transition assistance.
“While decisions that affect our workforce are never easy, it is important that we make long-term focused decisions and take actions that streamline our business to delight our customers and optimize our cost structure,” commented Matthew.
“Actions like these will enable us to successfully execute our transformation strategy and increase shareholder value.”
Once the reduction in workforce is complete, the company underlines that it expects to generate approximately $6.4million in annualized pre-tax savings, with $3.3million in Europe and the remainder in North America.
New senior players join Invacare North America
Alongside the reduction of staff, Invacare has made two new appointments to senior roles in its North American organisation, including injecting talent from the European side of its business.
Having held a number of high-ranking roles in Europe, including most recently serving as Managing Director of the Benelux (Belgium, Netherlands, Luxembourg) and Italy regions, Joost Beltman has been appointed Vice President of Sales and Marketing in North America.
“Joost’s proven success in Europe will help us execute a clear vision for profitable sales growth in North America as we navigate the ever-changing healthcare market. He will be instrumental in integrating the North America resources to drive overall commercial success,” commented Matthew.
Re-joining Invacare from Amoena USA, where he served as Vice President of Sales, Keith Brantly has been appointed Director of CRT Sales. From 2016 to 2018, he served as a National Accounts Director and Regional Sales Director at Invacare, and prior to that, he held a sales leadership position at Arjo.
“Keith’s understanding of the clinical sales process and collaborative customer relationships will continue to expand Invacare’s legacy of innovation and expertise in the complex rehabilitation space,” continued Invacare’s CEO.
“This is a core area for the company with strong products and clinical benefits. Keith’s focus will help us regain share and better align with customer success.”
A focus on mobility launches
In addition to its new senior additions and reduced workforce, Invacare has announced it is launching mobility products new to the region from its Küschall brand, as well as its new SMOOV one power add-on for manual wheelchairs.
With both products are already available in Europe – THIIS covered Invacare’s new Küschall Superstar model in September 2018 – Invacare will aim to replicate the success the company currently enjoys in the mobility market in Europe in North America.
“I am pleased to introduce exciting new products to the market, which capitalize on our history of innovation and deliver high clinical value,” noted Matthew.
“We have an incredibly full pipeline of new products on the horizon, which will help us achieve our long-term financial goals.”https://thiis.co.uk/redundancies-senior-appointments-and-new-launches-as-invacare-transforms-north-american-business/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2018/11/Kuschall-9.jpg?fit=1000%2C707&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2018/11/Kuschall-9.jpg?resize=150%2C150&ssl=1NewsroomSupplier NewsInvacare,Joost Beltman,Keith Brantly,Kuschall,Lay Offs,Matthew Monaghan,Mobility,North America,Redundancies,seating,SMOOV one,SuperstarInvacare has announced significant changes to three key areas of its business, including laying off 75 members of staff, as it continues to reshape its structure and offering as part of its enhanced transformation and growth plan. A multinational supplier of a wide range of healthcare equipment and one of...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine