Retractable Technologies, Inc. Announces Workforce Reduction

Rhea-AI Summary

Retractable Technologies, Inc. (NYSE American: RVP) has announced a workforce reduction of about 22% due to decreased domestic production needs. This decision primarily impacts the production, operations, and logistics departments, aiming for an annual savings of approximately $1.7 million, which is about 13% of its payroll expenses. The expected separation costs are around $154,000. Despite the workforce cut, the company is confident it can maintain its domestic production capacity to meet current demands.

Positive

• Expected annual savings of approximately $1.7 million, representing 13% of annual payroll expense.
• The company believes it can maintain its domestic production capacity post-reduction.

Negative

• Reduction of approximately 22% in workforce indicating decreased operational requirements.
• Separation costs incurred are expected to be around $154,000.

LITTLE ELM, Texas--(BUSINESS WIRE)-- Retractable Technologies, Inc. (NYSE American: RVP) reports that it has reduced its workforce by approximately 22%. The reduction is due to the decreased need for domestic production and production support personnel. The staff reduction primarily affects the Company’s production, operations, and logistics departments. The reduction will result in an overall annualized savings of approximately $1.7 million, or 13% in annualized payroll expense, offset by separation costs which are expected to be approximately $154 thousand. The Company expects that it will be able to meet its current level of domestic production needs after the headcount reduction and will continue to have significant domestic production capacity.

ABOUT RETRACTABLE

Retractable manufactures and markets VanishPoint^® and Patient Safe^® safety medical products and the EasyPoint^® needle. The VanishPoint^® syringe, blood collection, and IV catheter products are designed to prevent needlestick injuries and product reuse by retracting the needle directly from the patient, effectively reducing exposure to the contaminated needle. Patient Safe^® syringes are uniquely designed to reduce the risk of bloodstream infections resulting from catheter hub contamination. The EasyPoint^® is a retractable needle that can be used with luer lock syringes, luer slip syringes, and prefilled syringes to give injections. The EasyPoint^® needle also can be used to aspirate fluids and for blood collection. Retractable's products are distributed by various specialty and general line distributors.

For more information on Retractable, visit its website at www.retractable.com.

Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect Retractable's current views with respect to future events. Retractable believes that the expectations reflected in such forward-looking statements are accurate. However, Retractable cannot assure you that such expectations will materialize. Actual future performance could differ materially from such statements.

Factors that could cause or contribute to such differences include, but are not limited to: supply chain disruptions, Retractable’s ability to scale up production volumes in response to an increase in demand, potential tariffs, Retractable's ability to maintain liquidity; Retractable's maintenance of patent protection; Retractable's ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; Retractable's ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and other risks and uncertainties that are detailed from time to time in Retractable's periodic reports filed with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230327005707/en/

Retractable Technologies, Inc.

John W. Fort III, 888-806-2626 or 972-294-1010

Vice President, Chief Financial Officer, and Chief Accounting Officer

Source: Retractable Technologies, Inc.

FAQ

What is the reason for Retractable Technologies, Inc. (RVP) workforce reduction?

The workforce reduction of approximately 22% is due to decreased need for domestic production and support personnel.

How much does Retractable Technologies (RVP) expect to save from the workforce reduction?

Retractable Technologies anticipates annual savings of about $1.7 million, which is approximately 13% of its payroll expenses.

What will be the separation costs associated with the workforce reduction at RVP?

The company expects the separation costs to be around $154,000.

Will Retractable Technologies (RVP) still be able to meet production needs after the workforce reduction?

Yes, the company expects to meet its current level of domestic production needs despite the headcount reduction.