Furniture manufacturer Ashley is preparing to cut hundreds of jobs in Texas as the company consolidates its manufacturing operations.
According to the latest Worker Adjustment and Retraining Notification (WARN) filing submitted to the Texas Workforce Commission, the 80-year-old family-owned furniture chain plans to discontinue manufacturing operations at its manufacturing facility located at Scyene Road in Mesquite, Texas.
The decision comes as Ashley consolidates its Mesquite manufacturing operations with other facilities. As a result, it will “permanently discontinue all manufacturing operations” effective May 7, 2026, and lay off 266 employees.
Ashley, which currently employs more than 35,000 team members globally, is the world’s largest furniture manufacturer and the largest manufacturer in the United States. With headquarters in Arcadia, Wisconsin, Ashley has a network of manufacturing facilities and distribution centers across North America.
Ashley makes a tough call
The company notified employees of the decision on March 5, adding that some were offered the option to join Ashley’s other facilities or to fill available positions at its Distribution Center in Mesquite, which is still operational.
The furniture retail giant is optimistic that workers will take up new positions. If not, and if they continue working in their current positions until May 7, when their employment ends, they will be offered severance packages.
“Employees who do not accept other roles and remain in good standing will continue in their current role until May 7, 2026, when their employment will end and they’ll be offered severance. We’ll be meeting with employees soon to offer details about other positions and potential start dates,” notes the WARN filing, adding that there are no bumping rights and no employee is represented by a union.
The largest group of impacted employees comprises 109 upholstery training workers, followed by 31 machine operators and 24 packing employees, according to the filing.
Other positions include kit receiving, material handlers, operations supervisors, inspectors, and quality supervisors.
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Furniture industry faces slowing demand
The layoffs come as the furniture and home retail industry is facing year-over-year declines in sales. According to data from the US Department of Commerce’s monthly retail sales, reported from Retail Dive, the home furnishing sector has seen continuous declines since the brief surge during the pandemic, underscoring the ongoing pressures.
This is also tied to the sluggish housing market, which, until recently, was dubbed a seller’s market. And when housing sales are slow, it directly impacts the related goods industry. Add to this that, in October 2025, the U.S. implemented 10% tariff on timber and lumber and a 25% duty on upholstered furniture.
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Now, while the market may be turning more buyer-centric, with houses on the market longer than expected resulting in lower prices, affordability still remains a valid concern, according to Redfin.
Other companies in the sector are also adjusting operations. Recently, Swedish furniture giant IKEA also announced the closure of its Cordova, TN, facility, effective August 31, affecting 114 employees.
Related: Luxury retail giant cuts more than 1,200 jobs after bankruptcy filing
