US Major Furniture Company Suddenly Lays Off 2,700 Employees Ahead of Holiday

Furniture Company UFI Sends Text Message Notifying Almost All Employees of Layoffs Just Before Thanksgiving
Wave of Layoffs After Management Change in June... Employees Express Frustration, Some File Lawsuits

[Asia Economy Reporter Kim Sung-wook] A major American furniture company has sparked controversy by suddenly laying off about 2,700 employees ahead of the Thanksgiving holiday. One employee even filed a lawsuit, claiming the company did not follow labor law procedures.

According to reports from the New York Post and others on the 27th (local time), UFI (United Furniture Industry), a furniture company headquartered in Mississippi, USA, sent a text message to 2,700 employees around midnight on the 22nd to deliver the news. Just before the Thanksgiving holiday starting on the 24th, the company effectively notified nearly all employees of their sudden dismissal in the middle of the night. The message stated, "Due to unforeseen business circumstances, we regret to inform you that the board of directors has made the difficult decision to immediately terminate the employment of all employees."

The company also referred to the COBRA system, which under U.S. federal law temporarily guarantees health insurance provided by the company under certain conditions when an employee loses their job, stating, "This layoff is permanent, and all benefits, including COBRA, will be terminated immediately." Additionally, drivers who were out delivering furniture were instructed to "immediately return equipment, inventory, and delivery documents regardless of delivery completion." A follow-up email added, "As soon as the property manager arrives, we will ensure employees' belongings are collected safely and orderly for delivery."

Employees expressed shock and frustration, saying they were not informed of the reasons for their dismissal at all. According to The Guardian, one employee said, "This was a huge shock. We are all dedicated to the company and consider each other part of a family. Hearing the news when we were ready to work hard on Monday was deeply disappointing."

There were also complaints about the company unilaterally terminating health insurance coverage. Another employee appealed, "It is unfair to catch workers who take their jobs seriously off guard like this. A mother who recently gave birth is wondering if she has health insurance to cover it, and a cancer patient undergoing chemotherapy is concerned about how to pay for treatment."

UFI has produced mid-range furniture brands such as 'Lane Home Furnishings,' acquired from Heritage Home Group in November 2017. Earlier, in a 2019 press release, UFI President Larry George expressed, "We are pleased to expand our U.S. workforce in response to the steady and growing demand for our products, including the newly acquired Lane brand."

However, since June, with changes in the CEO, CFO, and Vice President of Sales, layoffs of executives and employees appear to have continued. According to Furniture Today, about 500 factory workers lost their jobs in July. Former employee Torina Neal filed a lawsuit against the company, claiming it did not comply with the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires at least 60 days' notice before mass layoffs.