positions eliminated from Batesville plant
to cut 300 positions nationwide
Wanda English Burnett, Editor
Recently the decision was approved by Hill-Roms Board of
Directors to make some changes in the company, one of which will
impact local jobs.
According to information from a press release, the reduction in
capital spending being seen by US hospitals has caused their company,
which is a leading worldwide manufacturer of medical technologies
and related services for the health care industry, to take another
look at how they structure their business.
The news release noted the decision will impact about 450 people,
more specifically the net reduction of positions is said to be
about 300. Company officials noted that about 170 of the 300 will
be salaried and production positions that will be cut from the
Batesville facility. Those cuts are expected to take place in
the next several weeks.
As of last week the company was planning to consolidate current
patient support manufacturing operations from its Charleston,
South Carolina facility to its Batesville operations and to some
outside suppliers. Also, a number of Post Acute Care Accounts
Receivable positions will be consolidated to create one Center
of Excellence in St. Paul, Minnesota. It was noted that the Batesville
facility will eliminate a number of positions due to the lowered
demand for hospital capital items as well as a result of ongoing
It was noted that associates who are affected by the position
eliminations will receive enhanced severance packages, including
ongoing health care benefits and outplacement services.
Some employees were offered a voluntary early retirement program.
These are painful decisions, particularly because they directly
affect our dedicated associates during these challenging times;
however, I want to reiterate the companys commitment to
stay the course on our strategy and maintain our investments in
selling and new product development, noted Peter Soderberg,
president and CEO.
It was noted that the eliminations and consolidations will result
in an annual savings of approximately $12 to $14 million, about
half of which is related to volume declines.
Hill-Rom announced on January 14 revenue for the first fiscal
quarter was $350 million, an increase of 2.6 percent. It was noted
the company would report on its first quarter earnings on February
5 providing more financial details on what the future outlook