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

La-Z-Boy Inc. 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. 

• Since layoffs were announced in March, La-Z-Boy had helped the community by making face masks. But it says the COVID-19 pandemic hurt its bottom line and the realignment is necessary to survive.

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.

AutoNation cuts 3,500 jobs

AutoNation, the country’s largest auto dealer, is eliminating 3,500 workers, about 50 percent of them furloughed due to the coronavirus.

Marc Cannon, executive vice president, confirmed to FOX Business the impacted employees were part of the initial 7,000 furloughed as efforts were made to become more nimble.

“The actions are a result of a successful move to digital and store efficiencies,” Cannon explained.