La-Z-Boy to cut 850 jobs, close Mississippi factory

Breana Noble
The Detroit News

La-Z-Boy Inc. said Thursday it is reducing its global workforce by about 10% and closing a Mississippi upholstery factory amid business challenges from the COVID-19 outbreak.

The move to cut 850 jobs across manufacturing, retail and corporate locations is to "right-size" the business, Kurt Darrow, La-Z-Boy chairman and CEO, said in a statement, as the Monroe-based furniture manufacturer forecasts the effects of high unemployment levels and uncertainty around economic recovery.

An exterior photograph of a La-Z-Boy store in Troy, February 19, 2019.

The recliner and 10% of upholstery production done at its Newton, Mississippi, facility will go to others in Tennessee, Missouri and Arkansas. The plant employs 300 people. The company expects to incur up to $7 million in pre-tax charges related to the actions.

bnoble@detroitnews.com

Twitter: @BreanaCNoble