Furniture Brands Plan Job Cuts After Loss

November 2, 2008  by in UnCategorized   

By Home Furnishings Business in Case Goods on November 2008 Executives at Furniture Brands International, which reported a $41.7 million net loss last week, said additional job cuts are planned as the company moves to bring expenses in line with decreased sales.

In a conference call with industry analysts, Chairman and CEO Ralph Scozzafava said planned cutbacks include corporate expenses and a reduction in the company’s employee base.

“Our non-production costs don’t match our projected sales levels, and we’ll make cuts in the coming months to lower those costs,” he said, adding that staff cuts had already been planned as the company phases in more shared services rather than continuing to have the company’s various brands run certain functions individually. “Right now, some functions have duplicate staffing, and those redundant legacy programs will begin to close out in the fourth quarter as our shared services are beginning to come online in a phased approach,” he said.

He didn’t offer specifics on the number of employees who could lose their jobs during the hour-long call.

The company, which includes well-known brands like Broyhill and Lane, said its third-quarter sales fell 17.6 percent to $413 million compared with the same period last year.