Herman Miller Announces Job, Expense Cuts

November 11, 2008  by in UnCategorized   

By Home Furnishings Business in Home Office on November 2008 Spurred by a sharp decline in orders, office and residential furniture maker Herman Miller, Zeeland, Mich., on Monday announced a plan to cut operating expenses by $60 million through a series of actions that include job cuts. Published reports said more than 400 jobs could be eliminated by the end of January through manufacturing layoffs and voluntary separation agreements.

The company said orders in September and October slipped to $34 million per week—from $41 million per week earlier this year. CEO Brian Walker said the cost-cutting will keep expenses in line with anticipated business while preserving the company’s ability to make key investments.

“These are difficult times for any business, and particularly for a community like ours at Herman Miller. But one of our strengths is our ability to face challenge directly, and to act with decisive purpose,” Walker said. “We are and will remain a resilient and agile company, serving our customers with great products and services and continuing to invest in key areas of opportunity, now and in the future.”

He said earnings in the company’s current quarter are expected to be down only modestly—with earnings per share of 57 cents to 64 cents—because of a strong backlog of orders.