by John R. Fischer
, Senior Reporter | August 24, 2023
Starting in October, ICU Medical will lay off 81 of its employees at one of its manufacturing facilities in Minnesota that it intends to close.
The company, which specializes in IV therapy, told state officials in a letter that the closure of the Oakdale facility “is expected to be permanent,” reported KSTP-TV/Channel 75 News
In a notice it sent to the Minnesota Department of Employment and Economic Development, it said the shutdown was part of changes it was making within its manufacturing operations at locations across the U.S. and that the facility would close completely by December 31, 2024.
Among the layoffs are engineering technicians, engineering managers, production leads, warehouse supervisors, inspectors, facilities managers, and managers for warehouse and human resources.
None are part of a union or have bumping rights, reported KSTP-TV/Channel 75 News.
“We will work diligently to make the transition as smooth as possible for all employees, providing them with at least a 60-day notice prior to their separation date,” Tom McCall, corporate vice president of global marketing at ICU Medical, told HCB News.
The facility manufactures CADD infusion pumps, which the FDA issued a recall on earlier this year, reported the Star Tribune
. It was previously owned by Smiths Medical, which was acquired in 2021 by ICU Medical.
McCall says that the company notified employees in March that it would be discontinuing operations at the Oakdale facility.
According to Seeking Alpha
, shares for ICU Medical have fallen 50% over the last two years, as the company deals with quality issues, higher interest costs, and high leverage. It attributes these troubles to its underperforming 2021 acquisition of Smiths Medical.
In 2022, the company reported $2.2 billion in revenue and a $74 million loss, according to the Star Tribune.
It is not known if the layoffs and closure in Minnesota are related to these issues.