Retractable Technologies (NYSE:RVP) announced today that it reduced its workforce by approximately 7%.
The Little Elm, Texas-based maker of products like syringes and needles said the move comes as it allocates more resources to the U.S. It aims to increase U.S. manufacturing capabilities and reduce reliance on products produced in China.
According to a news release, contract manufacturers in China historically produced most products sold by Retractable Technologies. (The company’s most recent annual report says 83.9% of its products came from China in 2024.) However, the material impact of tariffs on imports from China eliminates the company’s ability to continue the practice. As a result, the company seeks to minimize its exposure to tariffs and strategically import only products it can’t make domestically.
Sweeping tariffs imposed by the Trump Administration — then paused this week for at least 90 days — have created a stir in the medtech industry. Medtech trade group AdvaMed praised the decision to suspend the tariffs earlier this week, but the potential impact still looms, especially with China not included in the pause.
Retractable Technologies now plans to produce the majority of its products at its Little Elm facility.
“The company is unable to predict future U.S. trade policy, or the potential impact it may have on the company’s ability to import products from China or other countries,” Retractable Technologies said in the news release.
Retractable Technology’s annual report listed 227 employees as of March 10, 2025, which means the number of jobs cut could be around 16.
With its workforce reduction, the company expects to save about $1.6 million in annual wages and benefits. That equates to about 7.8% of its total estimated workforce costs. It anticipates one-time separation payments of about $300,000 to affected workers to offset the savings. About 72% of the targeted payroll reduction affects general and administrative functions. The remainder come from manufacturing or manufacturing support positions. (Read more about layoffs in medtech over the past couple of years HERE.)
