Furniture Brands to cut 1,400 jobs

Furniture Brands International, the parent company of several North Carolina-based manufacturers such as Thomasville Furniture and Broyhill, will cut about 1,400 jobs as part of a major cost-reduction effort, according to an announcement.

The announcement did not specify in which divisions or locations the jobs will be eliminated, but the level of cuts represents about 15 percent of the company’s total domestic workforce. Management, professional and hourly positions will all be affected, the company said.

CEO Ralph Scozzafava said the cuts are an “inevitable response” to the slumping furniture sales environment and recessionary economy.

``By aligning our costs with anticipated lower sales volumes, we are positioning the company for 2009 and beyond,” he said in the announcement. “With the eventual return of historical consumer spending patterns, Furniture Brands will be well positioned to leverage our more efficient cost base into improved profitability.”

Furniture Brands reported a net loss of $41.7 million in the third quarter of this year, following a loss of $23.9 million in the second quarter.