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LITTLE ELM, Texas - Medical device manufacturer Retractable Technologies, Inc. (NYSE American:RVP), currently valued at $20.54 million in market capitalization, announced Wednesday it has reduced its workforce by approximately 12.4%, primarily affecting manufacturing and support positions. The move comes as the company faces revenue decline of 16% over the last twelve months.
The company expects the reduction to save around $1.6 million in annual wages and benefits, representing about 8.6% of its estimated total workforce costs. These savings will be partially offset by one-time separation payments of approximately $56,000 to affected employees. According to InvestingPro analysis, the company has been quickly burning through cash, with negative EBITDA of $15.23 million in the last twelve months.
According to the company’s press release statement, the workforce reduction is part of Retractable’s ongoing efforts to balance its domestic manufacturing operations against reliance on imported products from Chinese contract manufacturers, which have been subject to significant tariffs.
Retractable Technologies, which manufactures safety medical products including the VanishPoint and Patient Safe product lines, indicated it plans to continue domestic production at its Little Elm facility while importing only products it cannot manufacture locally.
The company noted it cannot predict future U.S. trade policies or their potential impact on its ability to import products from China or other countries.
Retractable Technologies specializes in safety medical devices designed to prevent needlestick injuries and reduce the risk of bloodstream infections. Its products are distributed through specialty and general line distributors.
In other recent news, Retractable Technologies Inc. announced a change in its independent registered public accounting firm due to a merger involving its previous auditor. Moss Adams LLP, the former auditor, has merged with Baker Tilly US, LLP, prompting Moss Adams to resign as the company’s auditor. As a result, Retractable Technologies’ Audit Committee has appointed Baker Tilly as the new independent registered public accounting firm. The audit reports provided by Moss Adams for the fiscal years ending December 31, 2023, and 2024, and for the three-year period ending December 31, 2024, were not subject to any adverse opinions or disclaimers. There were no modifications related to uncertainty, audit scope, or accounting principles in these reports. Additionally, during the specified periods, there were no disagreements between Retractable Technologies and Moss Adams regarding accounting principles, financial statement disclosures, or auditing procedures. These developments reflect the company’s ongoing commitment to transparency and compliance in its financial reporting.
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