(Reuters) Furniture Brands International, the parent company of Thomasville, Lane, and Broyhill furniture, announced a 1,500 job reduction. FBI cites the recession and anticipation of tepid sales figures in 2009. This would result in about a 15% reduction in their total workforce.
"These reductions are an inevitable response to the recessionary environment and are necessary to strengthen Furniture Brands for the future," said Chief Executive Officer Ralph Scozzafava. Furniture Brands International expects to save over $20 million a year from the reduction.
Company spokesman John Hastings reported that the reductions will take place immediately. Employees will be paid for all time put in with the company, unused vacation, and severance pay. The total cost in severance payouts will near $9 million, and be counted against 4th quarter earnings.
While no explicit description of what areas of the company the reductions are affecting the most, it has been reported that production, management, and sales positions have all been cut. Sad holiday stories are already coming from from manufacturing plants like those found in furniture hub Tupelo, MS, where 400-500 jobs face elimination.
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Sad to hear
FBI has had a hard time staying relevant to furniture shoppers and professionals. While it's horrible that this many people lost their jobs prior to the holidays, perhaps this shock will bring the Lane and Broyhill brands to their senses.
-Patrick Summers