Hill-Rom Announces Layoffs Amid Lower Revenues

By Mike Perleberg (Batesville, Ind.) - One of southeast Indiana’s biggest employers is laying off hundreds of employees, but not all of them here. Batesville-based Hill-Rom Holdings, Inc. announced Thursday it will lay off 350 employees globally. That’s about five percent of Hill-Rom’s total workforce of close to 7,000 people. The news comes after the hospital bed and equipment manufacturer announced an 8.2 percent decline in first-quarter revenues. The company reported $393 million in revenue, off about $428 million. The layoff and restructuring will create about $30 million in annual savings. Hill-Rom President and CEO John Greisch said he was disappointed with the weaker than expected results, which he blamed on the inherent volatility and current challenges in the company’s capital equipment markets. “However, we remain committed to driving long-term margin improvement through aggressive management of our operating cost structure, as demonstrated by the restructuring actions we announced today,” said Greisch.  “At the same time, we will pursue improvements to our portfolio, in a manner consistent with our disciplined capital allocation framework, in order to continue to deliver value to our customers and shareholders.” In addition to the layoffs, the restructuring includes the planned closure of one facility in Europe and downsizing capacity throughout Hill-Rom’s other manufacturing networks there. Operations in the U.S. and Europe will be streamlined, including establishing a shared services center in Europe. RELATED STORIES: Namesake Member Resigns From Hill-Rom Board Camp, CEO of Hillenbrand, To Retire This Year Hill-Rom, Hillenbrand Closing Private Airport Hillenbrand Emerges From Anti-Trust Lawsuit Hill-Rom Adds Surgical Equipment Supplier Hillenbrand Diversifies With New Acquisition