Hillrom to cut jobs, blames coronavirus

September 24, 2020 – Hill-Rom Holdings Inc. (Chicago, IL), disclosed in a filing with the U.S. Security and Exchange Commission (SEC) that it was launching a workforce reduction plan “as part of the company’s continued business optimization initiatives.” The plan includes a voluntary retirement program and involuntary severance actions, Hillrom said. The company did not say how many jobs it expects to eliminate through the program. However, it estimated it will incur a restructuring charge of about $35 million related to employee termination and severance costs.

Hillrom spokesman Howard Karesh said the number of job reductions company-wide and in Skaneateles will not be known until after applications for the early retirement offer are received and approved. Employees have until early October to apply, with departures to follow in November, he said.

In its fiscal Q3, Hillrom reported a surge in demand for products such as its medical, surgical and intensive care unit beds, and Welch Allyn vital signs monitoring equipment and thermometry. However, reduced physician office visits led to a decline in certain product categories, including physical assessment and diagnostic tools, the company said.

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