Hill-Rom announced March 31 organizational changes consistent with its ongoing efforts to improve its cost structure. The changes include the elimination of approximately 160 positions throughout the company.
"These actions are being taken consistent with our commitment to improve our operating margins and deliver enhanced value to our shareholders," said John J. Greisch, president and CEO of Hill-Rom. "The organizational changes we are announcing today will reduce our operating costs, simplify our business structure, improve processes and increase the accountability of our customer-facing employees to focus more closely on our customer needs."
At the same time, Greisch confirmed that the company will continue to pursue its growth strategy, driven by increasing investments in research & development and a focus on investing in revenue-generating initiatives in markets throughout the world.
The company expects to incur a special charge associated with these actions during the quarter ending March 31, 2010 of $4 to $5 million, related primarily to severance benefits. The full year savings from these actions are estimated to be approximately $16 million. Details of the charge will be discussed on the company's earnings call for the second quarter on May 5.
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and information technology solutions. Hill-Rom's comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.
