Ashley Furniture slashes 266 Texas jobs amid tariffs and market downturn
Ashley Furniture, the world's largest furniture manufacturer, is cutting 266 jobs at its Texas plant. The company announced the layoffs as part of a plan to consolidate its Mesquite facility by May 2026. Workers affected include upholstery trainers, machine operators, and quality inspectors.
The job cuts come after the U.S. introduced new tariffs in October 2023. A 10% duty on softwood lumber and a 25% tax on certain imported furniture have raised production costs. These measures have added pressure to companies relying on global supply chains.
Ashley has stated that the layoffs aim to improve long-term efficiency. The move follows broader industry struggles, such as IKEA store closures and layoffs in auto parts and logistics. The home furnishing sector has also weakened, with fewer Americans moving due to high mortgage rates and a 5.8% drop in pending home sales.
Under Texas law, companies with over 100 employees must give 60 days' notice for mass layoffs. Ashley has complied with this requirement. The company is offering affected staff roles at other facilities, including the Mesquite Distribution Center. With operations in Wisconsin, Mississippi, North Carolina, and Vietnam, Ashley employs between 20,000 and 30,000 people worldwide.
The 266 layoffs will take effect by May 7, 2026. Ashley's decision reflects efforts to streamline operations amid rising costs and shifting market conditions. Affected employees have been given options to transfer to other company locations.
