Retractable Technologies is laying off around 7% of its workforce to free up resources amid market uncertainty prompted by the Trump administration’s tariffs.
The US-based developer of retractable needles and insulin syringes expects to save around $1.6m in annual wages and benefits through the job cuts.
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With around 72% of the targeted payroll reduction affecting general and administrative functions and manufacturing or manufacturing support positions, Retractable Technologies revealed that it is making the cuts so it can allocate more of its resources to increase its US manufacturing capabilities and reduce reliance on products made in China.
“While contract manufacturers in China have historically produced most of the products the company sells, the material financial impact of tariffs on imports from China eliminates the company’s ability to continue the practice,” the company said in a statement.
“As a result, the company will work to minimise its exposure to the tariffs and strategically import only those products which it cannot make domestically and rely on its Little Elm facility to produce the majority of its products.
“The company is unable to predict future US trade policy or the potential impact it may have on the company’s ability to import products from China or other countries.
The whipsawing effects of the Trump administration’s tariffs have wiped around $10tn off global stocks in the past week and engendered a mood of uncertainty, disbelief, and condemnation from global industry, heads of state, and economists who have warned that President Trump’s actions could pull the US into a recession.
China has been most severely targeted by the tariffs and is now facing levies of 125% on exports, even though the president has since placed a 90-day pause on the tariffs set to come into effect for most other countries. This month, China said it would “fight till the end”, and has since responded in kind to the US with reciprocal tariffs of 125% on US exports into China.
