Retractable Technologies, Inc. (RVP, Financial) has announced a 7% reduction in its workforce, a strategic move expected to save the company approximately $1.6 million annually in wages and benefits. This cost-saving measure represents about 7.8% of the total workforce expenses and is partially offset by one-time separation payments amounting to $300,000 to those affected employees.
The workforce reduction predominantly impacts general and administrative roles, which account for roughly 72% of the targeted payroll cuts. The remaining reductions are in manufacturing or manufacturing support positions. This restructuring effort aligns with Retractable Technologies’ focus on bolstering its U.S. manufacturing capabilities while decreasing its dependency on products manufactured in China.
The company has historically relied on contract manufacturers in China for the majority of its products, but the financial burden of tariffs on Chinese imports has necessitated a shift in this approach. To mitigate the impact of tariffs, Retractable Technologies plans to produce most of its products domestically at its Little Elm facility, while strategically importing only those items that cannot be made in-house.
However, the company remains uncertain about the future direction of U.S. trade policies and how such changes could affect its ability to import goods from China or other international markets. By reallocating resources and focusing on domestic manufacturing, Retractable Technologies aims to strengthen its operational resilience amidst evolving trade conditions.
