IntriCon Corp., a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, announced in a June 13 press release a global strategic restructuring plan that includes phased-in layoffs in Camden.

As part of the restructuring, IntriCon will complete a global workforce net reduction of approximately 35 administrative and support employees, resulting in immediate annual cost savings of $2 million. The majority of the staff reductions are immediate, except in the company's Maine operation, where there will be a phased approach. Impacted employees will receive financial support and outplacement assistance.

Additionally, IntriCon will classify its Maine operations, which include the company's security, microphone and receivers businesses, as discontinued operations for financial reporting purposes. Certain Singapore assets that support the microphone and receiver product lines also will be classified as discontinued.

The release states the restructuring is designed to accelerate the company's future growth by focusing resources on the highest potential growth areas and reduce costs by approximately $3 million annually.

Specifically, the plan includes:

– Reducing investments in certain non-core professional audio communications product lines;

– Aggressively transferring specific product lines from Singapore to IntriCon's lower-cost manufacturing facility in Batam, Indonesia;

– Reducing global administrative and support workforce;

– Transferring the medical coil business from the company's Maine facility to Minnesota to better leverage existing manufacturing capacity, and exploring alternatives for the remaining security and microphone business, including possible sale; and

– Adding experienced professionals in value hearing health and also focusing more resources in medical biotelemetry.

"As a company, we needed to better align our cost structure with current lower revenue levels—a trend that is continuing in the second quarter," said Mark S. Gorder, president and chief executive officer of IntriCon. "These initiatives allow us to consolidate operations, reduce our global manufacturing footprint, lower our costs and provide greater focus on our strategic plan: growing the value hearing health and medical biotelemetry opportunities that hold the greatest potential to drive shareholder value.

"While challenges remain in the conventional hearing health channel due to high device costs and inconveniences in the distribution channel, we're seeing opportunities for alternative care models such as the insurance channel—as evidenced by our hi HealthInnovations program—and the personal sound amplifier product (PSAP) market. Devoting more talent and financial resources to these channels, as well as adding sales, marketing and channel expertise, will better position us for success."

The company expects to achieve an additional $1 million in annual cost savings by the end of 2013, through the actions detailed above. Combined, IntriCon anticipates total annual cost savings of approximately $3 million.

"Change of this nature is hard, but necessary, for the health of IntriCon," said Gorder. "By right-sizing our organization, and better leveraging our existing resources, we'll be able to aggressively drive our two largest growth opportunities—which we expect will strengthen in the second half of the year."