Ashley Furniture, the world's largest furniture manufacturer, has announced plans to lay off 266 employees at its Mesquite, Texas, manufacturing and distribution centre. The job cuts, which represent less than 1% of the company's 35,000-strong workforce, are scheduled to take effect on 7 May, according to a notice filed with the Texas Workforce Commission.
The layoffs will affect 109 workers in upholstery training, 31 machine operators and 24 packing staff. However, the company has stated that affected employees will be offered positions at other Ashley facilities or potentially at the Mesquite distribution centre. Kelly Moriarity, senior director of human resources, said in the filing: 'We're offering job opportunities with Ashley at our other facilities. We may also have available positions at our Distribution Center in Mesquite.'
The company attributed the layoffs to its goal of 'optimising its manufacturing footprint, vertically integrating its facilities, and strengthening long-term operational efficiency.' The Mesquite facility opened in 2018 with 350 employees, and it is unclear how many will remain after the cuts.
The announcement comes amid significant uncertainty in the US manufacturing sector due to tariffs imposed by President Donald Trump. The furniture industry faces 25% levies on certain imports, making it difficult for companies to plan ahead. Peter Theran, CEO of the Home Furnishings Association, told CNBC: 'The No. 1 driver of the difficulty of managing your business is unpredictability and an inability to make alternative plans.'
Ashley CEO Todd Wanek expressed optimism about the tariff situation in a speech to the Home Furnishings Association in April 2025. He noted that the company had ceased business with mainland China on 1 April 2025, stating: 'We read the tea leaves early. It's every leader's responsibility to see things before others see them and make the necessary changes.' Wanek highlighted heavy automation and diversification of material sourcing as strategies to mitigate tariff impacts.
