Zeeland, Michigan-based MillerKnoll, Inc. is planning to close its Sheboygan facility, according to a WARN notice filed with the state. MillerKnoll produces office furniture, equipment and home furnishings. Its Sheboygan plant is located at 2218 Julson Court.
As a result of the plant closing, 162 employees will be permanently laid off by Sept. 29. Some of those workers are represented by two different unions: the United Steelworkers and the IUE-CWA Local 800.
"MillerKnoll has a network of operations facilities that allows the company to move production to the facilities that have the capacity, equipment and expertise," said the company in a statement. "It helps us better align our resources. We made the decision to consolidate some production and move health care from our Sheboygan facility into other MillerKnoll locations in the U.S. that have capacity to absorb this work. As a result, we will close our Sheboygan facility."
In July 2021, the company (then known as Herman Miller, Inc.) acquired Knoll, Inc. It then changed its corporate name to MillerKnoll, Inc.
Following the Knoll acquisition, the company announced a multi-year program designed to reduce costs and integrate and optimize the combined organization. MillerKnoll expects the program will result in pre-tax costs of approximately $140 million through a variety of tactics.
One of those tactics involves savings related to severance and employee benefits following a series of workforce reductions.
“During the first quarter of fiscal year 2023, the Company announced a restructuring plan to reduce expenses,” according to MillerKnoll’s latest 10-Q filing. “These restructuring activities included voluntary and involuntary reductions in workforces. As the result of these actions, the Company projects an annualized expense reduction of approximately $30 million to $35 million.”
For the third quarter of fiscal year 2023, the company’s Americas Contract segment posted net sales totaling $48.6 million, down 4.9% versus the same period last year. New orders in the quarter totaled $461.6 million, a decrease of 12.6% from the same quarter last year.
“The year-over-year decline in orders reflects the impact of a challenging macro-economic environment compounded by pandemic-driven pent-up demand last year,” reads a press release on the company’s third quarter fiscal 2023 results.
MillerKnoll was not immediately available for comment on the Sheboygan plant closure Wednesday.