GRAND RAPIDS, MI – Office furniture manufacturer Steelcase Inc. will shut down its Lithia Springs, GA, facility and cut 300 jobs as part of the company’s restructuring, according to the Atlanta Business Chronicle.
“The overall global economic slowdown and factors contributing to the turmoil in the capital markets are influencing the current demand for office furniture,” Steelcase said in a Securities and Exchange filing. “Order patterns in many of the company’s domestic and international markets have softened more than expected over the quarter, compared to a relatively strong period last year. In addition, certain foreign currencies have weakened relative to the U.S. dollar and relative to the company’s previous expectation.”
The company expects third quarter fiscal 2009 revenue to be about $805 million and expects to report a “modest” net loss.
Steelcase will cut a total of about 900 jobs overall as it consolidates manufacturing and distribution facilities in North America. This will cost the company $20 million to $25 million in restructuring costs over the next six to nine months but will generate pre-tax savings of $40 million once completed.
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