Medline is laying off 304 workers, according to a notice filed with the state of Illinois and a Nov. 5 Chicago Tribune report. The workers are mainly corporate employees, though some facility jobs are affected.
The layoffs are “part of a broader effort to simplify how we operate, reduce complexity and position the company for long-term success,” the spokesperson told the Tribune, adding that the company remains financially strong and that the cuts are not related to its bed safety issues. The FDA issued an early alert Oct. 29 saying the beds’ electrical components can overheat and cause fires, and that bed accessories can pose entrapment and asphyxiation risks. Medline notified customers Oct. 14 that it was removing the beds, which include home care, bariatric and long-term care models, and the FDA reported two deaths and 16 serious injuries.
The cuts come as Medline reports higher sales but lower profit. In the nine months ended Sept. 26, net sales rose about 11% and net income fell about 29%, with a smaller 1.2% dip in net income for the third quarter. Medline cited higher operating expenses, a $316 million loss tied to a June fire at a California distribution center and larger inventory costs because of inflation.
Medline is also notifying customers of January price increases after concluding that inflation will last through 2027. CFO Mike Drazin said on the company’s earnings call that Medline plans a “larger-than-usual price increase” early next year to offset part of inflationary pressures, with diesel fuel costs a pressure point.
Medline went public in December in an offering that raised more than $7 billion, the largest IPO of 2025. The company raised its IPO to $6.3 billion before pricing, and it leased two new distribution centers in Northern California after the Tracy fire.
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