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June 4, 2020, 5:19 p.m. EDT

La-Z-Boy to lay off 850 people, close Mississippi plant

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By Claudia Assis

LZB

La-Z-Boy Inc. /zigman2/quotes/202858913/composite LZB -0.52% said late Thursday it will lay off about 10% of its workforce, or 850 employees, across its business and including an upholstery factory in Mississippi. Production will be shifted to available capacity at the company's plants in Tennessee, Missouri, and Arkansas, La-Z-Boy said. The Mississippi plant, built in 1960, employs about 300 people and accounts for about 10% of the company's upholstery production as well as making the company's recliners and other furniture. The coronavirus pandemic "has had a far-reaching impact," Chief Executive Kurt L. Darrow said in a statement. The company "responded quickly" and as a result "we are confident we will emerge from the crisis with strength and remain a leader in the industry," Darrow said. " Since restarting production at the majority of our plants at the end of April, we have steadily increased production and continue to bring back more employees to meet demand." It is appropriate, however, to "right size" the business, Darrow said. "Still, these are difficult decisions to make and we deeply regret the impact they will have on those employees who are affected." La-Z-Boy expects to spend about $5 million to $7 million in fiscal 2021 in pre-tax charges related to these moves. The company is slated to report fiscal 2020 fourth-quarter and full-year results on June 23 after the bell.

/zigman2/quotes/202858913/composite
US : U.S.: NYSE
$ 26.60
-0.14 -0.52%
Volume: 128,916
July 14, 2020 3:21p
P/E Ratio
16.12
Dividend Yield
0.00%
Market Cap
$1.23 billion
Rev. per Employee
$190,182
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