Medical device manufacturer Retractable Technologies said that it has reduced its workforce by approximately 12.4%.
According to ZoomInfo, the company had 221 employees as of 2024, which means the cuts will impact approximately 27 employees. The cuts will primarily impact manufacturing and manufacturing support positions as the company tries to "balance its domestic manufacturing presence against its reliance on imported products...from its Chinese contract manufacturers."
The company, which manufactures safety medical products marketed under the VanishPoint and Patient Safe names, along with the EasyPoint needle, pointed toward tariffs on China as the reason for the job cuts.
"While contract manufacturers in China have historically produced most of the products the company sells, the material financial impact of tariffs on Chinese imports has caused the company to ramp-up its domestic production activities, while working to minimize the financial impact of the change," the company said in a statement.
Retractable said that, wherever possible, it will import only those products which it cannot make domestically and rely on its Little Elm facility to produce the remainder of its products.
The company estimated the workforce reduction will save an estimated $1.6 million in annual wages and benefits, or approximately 8.6% of total estimated workforce costs. The expected savings is offset by one-time separation payments of approximately $56,000 to the affected workers.
