Posted on 09/25/2001 7:17:04 AM PDT by Willie Green
For education and discussion only. Not for commercial use.
ZEELAND, Mich. -- Herman Miller Inc. said Monday it is eliminating 750 jobs, transferring work to its suppliers and consolidating its operations at three Holland-area facilities to soften the blow of the current economic downturn.
Since January, the office furniture maker has reduced its work force by 2,600, said Michael A. Volkema, chairman and chief executive officer.
The most recent job cuts came as the office furniture maker announced a net loss, after charges associated with an early retirement program and work force reductions, of $2.9 million for the first quarter of fiscal 2002. The quarter ended Sept. 1.
The Zeeland-based company said sales for the quarter were $410.3 million, down 25 percent from the same period last year. Orders declined 33.3 percent to $416.2 million.
About 300 of the new job cuts will be in western Michigan, the company said.
Herman Miller employs 10,000 people worldwide, including 6,500 in western Michigan, and is one of the three largest office furniture makers in the nation. The other two -- Grand Rapids-based Steelcase Inc. and Holland-based Haworth Inc. -- also have cut hundreds of jobs this year because of slumping sales.
FP
The dotcom shakeout has created a glut on the "used" office furniture market. Even relocation of firms displaced by the WTC tragedy is not likely to provide sufficient demand to stimulate the entire industry. And although commercial real estate is likely to be reconstructed on the WTC in the future, it is unlikely that anything will be ready for new furnishings for at least 3 or 4 years. (It's gonna take time to clear the debris, plan and build the new buildings.)
I agree it'll take at least 6 months to a year, but I doubt 3-4 years to see the beginning of it.
FP
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