La-Z-Boy Inc. announced Thursday it is permanently and immediately closing its upholstery manufacturing facility in Newton.
The Monroe, Michigan-based company, which specializes in residential furniture, said it would be reducing its global workforce by about 10%, around 850 employees, across its manufacturing, retail and corporate locations.
The company cited the impact of the COVID-19 pandemic in its decision.
Production will be shifted to La-Z-Boy’s plants in Dayton, Tennessee, Neosho, Missouri and Siloam Springs, Arkansas, according to a company news release.
The Newton upholstery plant, built in 1960, employs about 300 people, accounts for approximately 10% of the La-Z-Boy branded business total upholstery production and manufactures La-Z-Boy recliners, motion sofas and classics (high-leg recliners), according to the news release.
The Newton-based integrated internal supply functions will remain in operation, the company stated. Approximately 170 people work across these areas and will remain with the company, the company stated.
The Newton facility furloughed workers this spring because of the pandemic, but brought some back to make face coverings for medical workers.
“… It is now appropriate to leverage the efficiencies we have created across the company and right size our business for the long term given the impact of COVID-19 on the state of the economy, with wide-sweeping unemployment levels and the uncertain timing of a full economic recovery,” Kurt L. Darrow, chairman, president and chief executive officer of La-Z-Boy said in a statement.