La-Z-Boy announced Thursday it would be closing its upholstery manufacturing facility in Newton as part of a 10 percent global workforce reduction.
The permanent layoff will affect about 300 at La-Z-Boy South, a facility that has been in operation since 1960.
Danny Simoneau, general manager of La-Z-Boy South, said 170 workers will still be working in the downtown Newton facility working mostly in a leather cutting and sewing operation and other positions. The cuts will not affect La-Z-Boy's shipping facility on Hwy. 15 in Newton or its facility in Philadelphia, Miss.
Nationwide, La-Z-Boy furloughed all of its employees March 27 except for a small group of department heads at each facility and a few workers that were brought back a few days later to produce masks for emergency workers responding to the COVID-19 outbreak.
Simoneau said he was unable to meet with all 300 workers prior to the announcement Thursday by the corporate offices. He said he will meet with these workers on Friday to answer questions that they might have about the company's decision.
The company said in a news release it would cut approximately 850 jobs across its operations to “improve competitiveness and position the company to drive long-term value for all stakeholders.”
“Effective immediately, the company will reduce its global workforce by about 10 percent, or approximately 850 employees, across its manufacturing, retail and corporate locations, including the closure of its Newton, Mississippi upholstery manufacturing facility. Production will be shifted to available capacity at the company’s Dayton, Tennessee, Neosho, Missouri, and Siloam Springs, Arkansas, plants,” La-Z-Boy said via press release.
“The Newton-based integrated internal supply functions will remain in operation,” La-Z-Boy said via press release. “Approximately 170 individuals work across these areas and will remain with the company.”
Check www.newtoncountyappeal.com and Wednesday's edition of The Newton County Appeal for more on this developing story.
To view the La-Z-Boy press release, click HERE.
