La-Z-Boy Inc. announced a restructuring plan that will include the closures of its Lincolnton, N.C., and Iuka, Miss., upholstery manufacturing facilities, the closure of its rough mill lumber operation in North Wilkesboro, N.C., and the consolidation of three operations into one at Kincaid’s Taylorsville, N.C. upholstery operation, resulting in the elimination of 500 jobs.
The restructuring is expected to save the company, based in Monroe, Mich., $11 million per year.
The Lincolnton plant, which employs 250 people, will cease operations in July, and production will be moved to La-Z-Boy's Newton, Miss., Siloam Springs, Ark., and Dayton, Tenn., facilities.
The Iuka plant, with approximately 150 workers, is scheduled to close in early May, with its production moving to facilities in Mississippi.
The consolidation of the North Wilkesboro lumber operation into the Hudson, N.C. operation and the consolidation of the Taylorsville plants, along with the change in La-Z-Boy’s corporate structure, will eliminate about 100 positions.
According to Kurt L. Darrow, president and CEO of La-Z-Boy, the plant closings and subsequent reduction of the workforce will help the company to remain competitive and to operate more efficiently in its remaining manufacturing facilities.
Currently, the company has over 5.6 million square feet of upholstery manufacturing space in North America and 8,000 workers in those facilities.