Friday, March 09, 2007

La-Z-Boy to slash 500 jobs

This article states that La-Z-Boy is going to have to close two of its production plants and lay off 500 of its workers stateing that it was due to a drop in sales and tough industrywide environement. It also states that consumers have had stopped spending on "bigger ticket" items. This has made me wonder what could have cause such a drop in a univeral drop in consumer spending and if this is only the first round in a series of layoffs that La-Z-Boy is going to be forced to make, should the economy continue to sink.

1 comment:

Cory said...

Obviously the demand for la-z-boys has fallin because not every one needs one to begin with. For the lack of sales maybe the price is to high to begin with and no one wants to buy them. If they would lower the "bigger ticket" items at a equillebrium then they would sell more. I know i sure a hell aint spenden 500 bucks on a damn chair. I dont believe the economy will sink but the company in general will sink. They need to find a way to gain new customer in the market.