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Newton La-Z-Boy plant to close as company cuts 10% of global workforce

The closure of the La-Z-Boy plant in Newton will leave many Mississippians out of work. 

A news release states that the company will close the plant, which opened in 1960 and accounts for 10% of its total upholstery production. Production will be shifted to available capacity at the company’s Dayton, Tennessee, Neosho, Missouri, and Siloam Springs, Arkansas plants.

The plant employs 300 people, but not all of them will be laid off. The announcement states that the Newton-based integrated internal supply functions will remain in operation.  Approximately 170 individuals work across these areas and will remain with the company.

La-Z-Boy Chairman Kurt L. Darrow cited the COVID-19 pandemic as a driving force behind the decision.

“It is now appropriate to leverage the efficiencies we have created across the company and right-size our business for the long term given the impact of COVID-19 on the state of the economy,” his statement partially reads.

In all, the company is reducing its global workforce by about 10% with approximately 850 employees being laid off.

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