Canadian Home Furniture Manufacturers Announce Layoffs

Two Canadian furniture manufacturers have announced workforce reductions in the wake of economic challenges.

Winnipeg-based Palliser, renowned for its upholstered leather products, has temporarily laid off 40 employees from its global workforce of approximately 3,500.

The decision, reported by the Winnipeg Free Press, is driven by a persistent decline in order volumes since the surge and subsequent drop in demand during the Covid-19 pandemic.

Palliser CEO Peter Tielmann expressed optimism that the company will return to full operational capacity by late August, anticipating an uptick in demand during fall.

This situation echoes past challenges faced by Palliser. In March 2020, the company laid off approximately 500 workers and temporarily ceased operations due to the pandemic’s initial outbreak.

Ameriwood Home, one of several brands operated by Dorel Industries, has permanently eliminated approximately 130 hourly positions as it makes a noteworthy change at its Tiffin, Ohio, facility. The company is shifting away from manufacturing to a distribution and warehouse operation to support Dorel.

Equipment from the Tiffin plant will be relocated to other production facilities, effectively ending manufacturing at this site. The last day of production is slated for Sept. 5.

The employee cuts are driven by a significant downturn in business, cites the WARN notice issued to the state by Dorel.

The Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days notice to  affected employees and both state and local representatives before a plant closing or mass layoff.

The Ohio distribution centre, which will emerge from this transition, will retain only 40 hourly and salaried positions.

In March, Dorel announced a restructuring plan as net losses continued to mount, resulting in the layoff of 40 workers in its home segment. The company has now reported financial losses for 11 consecutive quarters.