June 6, 2022

Retractable Technologies cuts 16% of workforce after fulfilling government COVID contracts

Little Elm-based Retractable Technologies Inc. has cut its workforce by about 16%, a move that comes after the syringe maker largely completed a facility expansion and wrapped up government orders tied to the rollout of COVID-19 vaccines.

The cuts will save the company about $2.1 million a year, or 13% of its yearly payroll obligations, it said in a Monday announcement. In the first three months of this year, the company’s domestic revenue was 46.8% lower than in the same period last year, according to regulatory filings, a drop that the company attributed largely to lower government sales.

Company officials were not immediately available for comment on Monday.

The company had 235 employees in March, a 68% increase from two years before. Last year, it recorded $113.7 million in sales to the U.S. government — comprising about 60% of its 2021 revenue.

Retractable Technologies won two government contracts in 2020 to supply syringes to the U.S. government, worth a combined $137.4 million. Last year, the company received $27 million in additional funding.

The government’s contracts helped the company ramp up production, including by installing two new safety-syringe assembly lines at its Little Elm manufacturing facility.

Retractable Technologies said it expects to keep domestic production at its current level, despite the workforce cuts, with production growing after it completes its expansion.

Founded in 1994, the company also produces the VanishPoint syringe, catheters and blood-collection devices.

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