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The 80-year-old family-owned furniture company – which claims to be the world's largest furniture manufacturer – is cutting hundreds of jobs while restructuring its Texas plant.
Earlier this month, Ashley Furniture filed a Workforce Adjustment and Retraining Notice (WARN) with the Texas Workforce Commission, indicating that 266 workers will be laid off on May 7, as the company plans to “consolidate” its Mesquite location.
“Ashley is consolidating manufacturing operations at its Mesquite, Texas facility with manufacturing at other Ashley manufacturing facilities. Manufacturing operations at the Mesquite facility will end on May 7, 2026,” Ashley said in a statement to Fox News Digital.
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“Employees affected are being offered opportunities for positions available at other Ashley facilities, including roles at the Mesquite Distribution Center,” the spokesperson continued.
Workers at a US-based furniture factory lift a sofa on November 12, 2021. (Logan Cyrus/Bloomberg via Getty Images/Getty Images)
WARN's official notice, originally obtained by the Texas news agency The Chron, indicated that 109 upholstery training workers, 31 machine operators, 24 packaging workers and additional reductions in inspectors, quality managers and material managers would take place.
The state of Texas requires companies with more than 100 employees to provide at least 60 days' notice of closings or layoffs to “provide protection to employees, their families and communities,” according to the WARN Act website.
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“This decision reflects Ashley's ongoing efforts to expand its manufacturing footprint, align its facilities and strengthen long-term efficiencies,” the statement said. “It reinforces our commitment to delivering high-quality products and exceptional service to customers around the world, as we continue to adapt, grow and operate efficiently in a dynamic and ever-changing industry.”
In October, the US imposed a 10% tariff on softwood lumber and a 25% duty on certain imported furniture, which is already in effect, according to a White House announcement. While the Trump administration has said the measures are aimed at protecting domestic industries and national security, higher costs are putting pressure on furniture makers who rely on global chains.
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The home furnishings sector has also taken a hit as fewer Americans move, mortgage rates are up nearly 6% and pending home sales are down 5.8% year over year, according to February data from the National Association of Realtors.
Ashley's move follows broader industry changes, including store closings by companies like IKEA and layoffs in the auto parts and transportation sectors, which could signal a broad recovery in US manufacturing by 2026.
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