World’s largest furniture maker cuts hundreds of jobs amid major restructuring
An 80-year-old family-owned furniture company — which says it is the largest furniture manufacturer in the world — is cutting hundreds of jobs while restructuring a Texas plant.
Earlier this month, Ashley Furniture filed a Worker Adjustment and Retraining Notification (WARN) with the Texas Workforce Commission, indicating that 266 employees will be laid off by May 7, as the company plans to "consolidate" its Mesquite facility.
"Ashley is consolidating manufacturing operations at its Mesquite, Texas facility with production at other Ashley manufacturing locations. Manufacturing operations at the Mesquite facility will conclude May 7, 2026," Ashley told Fox News Digital in a statement.
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"Affected employees are being offered opportunities for available positions at other Ashley facilities, including roles in the Mesquite Distribution Center," the spokesperson continued.
The formal WARN notice, initially obtained by Texas news outlet Chron, indicated that 109 upholstery training workers, 31 machine operators, 24 packing employees and additional cuts to inspectors, quality supervisors and material handlers would take place.
The state of Texas requires companies with more than 100 employees to provide at least a 60-day notice of closures or layoffs to "offer protection to workers, their families and communities," according to the WARN Act website.
"This decision reflects Ashley’s ongoing efforts to optimize its manufacturing footprint, vertically integrate its facilities and strengthen long-term operational efficiency," the statement said. "It reinforces our commitment to delivering high-quality products and exceptional service to customers worldwide, while continuing to adapt, grow and operate more efficiently in a dynamic and ever-changing industry."
In October, the U.S. implemented a 10% tariff on softwood lumber and a 25% duty on certain imported furniture, which remain in effect, according to a White House proclamation. While the Trump administration has said the measures are intended to protect domestic industries and national security, higher costs are pressuring furniture makers that rely on global supply chains.
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The home furnishing sector has also taken a hit as fewer Americans are moving, with mortgage rates hovering around 6% and pending home sales 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 closures by companies such as IKEA and layoffs across the auto parts and logistics sectors, potentially signaling a wider recalibration of U.S. manufacturing in 2026.