Herman Miller cuts 255 more workers

Grand Rapids Press ^ | Monday, March 10, 2003 | Rob Kirkbride

[FourPeas]

Herman Miller cuts 255 more workers

Monday, March 10, 2003

By Rob Kirkbride
The Grand Rapids Press

ZEELAND -- The worst for Herman Miller Inc. was supposed to be over, but the office-furniture depression that shows little sign of easing is expected to cost at least 255 workers their jobs at the Zeeland-based furniture company.

The Press learned today that Herman Miller is preparing to announce that 140 to 150 white-collar jobs are being eliminated and 115 production workers laid off in response to the sluggish economy and threat of war that has kept furniture buyers on the sideline.

A Herman Miller spokesman declined to comment on the announcement, but the company was expected to outline the cuts after the stock market closes today and all Herman Miller workers are notified.

The office and production jobs affected are worldwide, according to sources, but most are in West Michigan.

For more than six months, it appeared Herman Miller was back on track or at least had contracted enough to keep the remainder of its workforce employed through the two-year office-furniture depression.

In December, Herman Miller announced it had second-quarter net earnings of $11.8 million, or 16 cents a share, up from a loss of $22.7 million, or 30 cents a share, during the same period last year.

Sales for the quarter dropped 9.5 percent to $357 million, down from $395 million during the same time last year.

The last cuts at Herman Miller were in early November when about 150 workers took a 30-day voluntary layoff. The last major layoff was last March, when 600 workers lost their jobs.

Herman Miller isn't alone in its cuts.

Industry leader Steelcase Inc. last week warned about 250 hourly workers in Grand Rapids that they might lose their jobs in the next 60 days, including 37 semi-skilled and skilled trades workers. It also said it was terminating jobs for an undisclosed number of white-collar workers, most in Grand Rapids.

The company also said it would close down for a week in April for the spring break holiday.

And a few weeks ago, Haworth Inc. told 255 employees that their jobs were eliminated.

see JOBS, A4

CONTINUED FROM A1

More than 10,000 West Michigan office-furniture jobs have been eliminated in the past two years.

Herman Miller third-quarter earnings will be announced on March 19. In early trading today, the company's stock was up 4 cents to $15.60 a share.

An industry recovery is coming, but it will take years before it climbs to the pinnacle it reached in 2000, according to the Business and Institutional Furniture Manufacturers Association.

The latest forecast from the Grand Rapids-based furniture trade association anticipates a 5.6 percent increase in shipments to $9.4 billion for 2003.

More improvement is expected in 2004 with shipments projected to top $10.5 billion, which still is far from the industry high of $12.29 billion in 2000.

[finnman69]

No surprise. There is a huge surplus of perfectly good almost new furniture form the dot coms that went bust.

[shadowman99]

Cluestick: Your Areon chairs cost too much!!! 900 bucks for a mesh chair = I'm buying a cheaper chair.

[TennTuxedo]

All of those jobs being cut are going overseas like the rest of the furniture industry. Furniture making was an art that helped build this country. It is soon to be a lost art in this nation as we buy more and more poorly crafted Chinese, Indonesian, Phillipene, and Vietnamese made furniture.

[FourPeas]

Aerons are definitely expensive. However, if you've never sat in one, you don't know just how good a chair can feel. Industry-wide, high-end chair run in the same ballpark, it's not just HMI.

[FourPeas]

The industry's flat. No one is buying office furniture. It's an expense that can, and is, put off until better economic times.

[eno_]

Street price is as low as $600 and about $500 on eBay in excellent used condition. That's still a lot for a chair. I picked up some top-of-the-line Teknions for $50 each at a dot-bomb auction.

[mr.pink]

There is a huge surplus of perfectly good almost new furniture form the dot coms that went bust.

There sure is...I'm currently sitting in my mint condition $300 Herman Miller Aeron chair, and working at my $45 ($300 new) desk, and under my $40 lamp (orig $250)...all courtesy of a busted bubble. ;o)

I've actually found the HM chair to be a bit over rated, and prefer my $50 el cheapo chair for long days at the computer.

[kemathen7]

Our company just furnished three office buildings with Herman Miller. We got a great deal on the furniture (Aeron's were "thrown in"). We learned that we were one of two major sales in the country. One of two. Wow. No wonder they are laying off folks.

[Atlas Sneezed]

I like My Aeron, but dislike the uninsulated seat in the winter. A litle too much ventilation for my preferences.

[mr.pink]

LOL...but the "ventilation" factor is pretty welcome June through August.