La-Z-Boy to Cut 480 Manufacturing Jobs
MONROE, Mich. (AP) _ La-Z-Boy Inc. is cutting 480 manufacturing jobs at plants in North Carolina and Tennessee under a reorganization of its Casegoods Group, the company said Tuesday.
On Aug. 15, La-Z-Boy will close two Lea Industries plants in Morristown, Tenn., eliminating approximately 330 jobs. The company’s warehousing and shipping operations in Morristown will remain open, with about 40 workers.
About 150 employees at the company’s Pennsylvania House upholstery plant in Monroe, N.C., will lose their jobs when it closes Aug. 29.
La-Z-Boy president and chief executive Gerald L. Kiser said company leaders ``deeply regret″ the closures, but ``strongly believe these actions are in the best long-term interests of our remaining employees.″
The company, which is based in Monroe, Mich., will offer severance pay, Kiser said.
The cuts come as La-Z-Boy closes its plants producing casegoods, or storage furniture such as bookcases and chests of drawers. Kiser said casegoods manufacturing faces ``fierce competition from lower cost import products.″
The reorganization plan will create 75 jobs at other plants, the company said.
La-Z-Boy said the changes will cost $10 million, or 11 cents per share. The change will produce an annual savings between $5 million and $6 million, the company said.
La-Z-Boy shares fell 5 cents Tuesday to close at $21.70 per share on the New York Stock Exchange.
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