Furniture Brands International Inc. (FBN) on Friday revealed workforce and manufacturing realignment in the company.
As a part of the initiative, the company said it eliminated about 80 executive and administrative employees across the entire company, representing 5% of its non-manufacturing workforce.
In addition, the company said it plans to consolidate Plant C case goods operation into its Lenoir-North Carolina case goods plant. The noted that the plant would cease manufacturing operations in July of 2007. Also, the company said would consolidate its Plant 3 and Plant 4 upholstery operations into its Plant 9 upholstery operation, located in Hickory, North Carolina. The company further noted that it would eliminate about 100 additional positions across the company associated with ongoing manufacturing operations.
The company expects the restructuring, asset impairment and severance charges associated with these closures would total about $4.0 million or $0.05 per common share and expects these would be spread evenly over the second and third quarters,. Also, the company said it expects the restructuring initiatives to generate annualized savings of about $13 million.
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