Furniture Brands Layoffs Job Cut: fires 1400 employees

The economic crisis is hitting all sectors. Furniture Brands has decided to go for layoffs - around 1400 employees will be fired by the company.

How many employees will be fired by Furniture Brands layoffs?
Around 1400 employees will be asked to quit their jobs - this constituests 15% of the employee strength in USA alone.

What are the reasons for Furniture Brands Layoffs?
It is unable to cope with the downwards moving retail market, where the demand has gone down dramatically.

Any details about severance costs for Furniture Brands ?
As per the news, The manufacturer and retailer said it would incur severance costs of $8 million to $9 million and will take a charge against fourth-quarter earnings to reflect most of the expense, with the cash impact hitting in the first quarter. Furniture Brands said the severance costs were included in its estimate of $56 million to $72 million in fourth-quarter pretax charges.

Which segment of employees will loose their jobs in the Furniture Brands Layoffs?
Many management, professional and hourly jobs are expected to be cut. Production jobs will also be cut and that will eliminate the need for factory closure.

How much savings can be made by the Furniture Brands Layoffs?
A saving of around $20 million per year can be achieved, and that saving will start next year itself.

Furniture Brands makes and sell furniture under brands such as Broyhill, Lane and Thomasville