Herman Miller, Steelcase making layoff plans

by Chris Knape | Gazette News Service

Friday November 14, 2008, 9:34 AM

ZEELAND -- Herman Miller Inc. on Tuesday announced plans to slash hundreds of area jobs while rival Steelcase Inc. warned it may shed 300 workers as both brace for effects of the global economic downturn.

Zeeland-based Herman Miller on Tuesday said it will cut 400 to 650 jobs through job cuts, layoffs and buyouts -- mainly in West Michigan -- through January.

Between 200 and 400 hourly workers could be laid off and about 250 white-collar jobs are to be eliminated. Herman Miller has about 4,500 employees in West Michigan.

Grand Rapids-based Steelcase, which employs about 4,700 workers in the area, was to send out announcements Thursday to 300 hourly employees about possible layoffs within 60 days.

Officials from both companies said the number of jobs cut will depend on ordering trends over the next month. Industry predictions -- which are being revised -- are that shipments will drop 10 percent this year.

Both companies supply desks, chairs and other office furniture to major employers worldwide, many of them hard-hit by the financial meltdown.

In its announcement Tuesday, Herman Miller also cut its second-quarter sales forecast to $475 million to $495 million, with earnings per share of 57 to 64 cents