Crescent-News.com - Sauder to cut about 80 jobs

ARCHBOLD -- About 80 jobs are planned to be cut from ready-to-assemble manufacturer Sauder Woodworking later this year in an accort to streamline company production.

In a press release issued today, the Archbold-based company will also reduce the number of products the it manufactures and simplify the process for serving smaller and non-North American retail customers. This will allow the company to streamline its operations, run more efficiently, and serve its core customers more effectively.

Sauder's new sustainable business plan involves three components: customer portfolio, product portfolio, and business simplification.

The company plans to focus on its core customers; eliminate slow selling and niche items; and transform the operation into a "lean enterprise", which will mean some restructuring in its management and staff areas, resulting in 70-80 positions being eliminated plus a number of internal transfers and reassignments.

"As the business has grown and become more complex, we have seen our fixed cost structure get out of alignment with the realities of this competitive marketplace," said company president and CEO Kevin Sauder. "It hurts us deeply to make these cuts, but the business needs to get back to a sustainable level of profitability."

Production levels have remained steady in the first quarter of 2008 and sales are up slightly over 2007. With this new strategy and the sluggish economy, Sauder anticipates some reduction in overall production levels in the last half of 2008.

While the overall employee count will decrease to align with production requirements, Sauder anticipates that most of the downsizing will be covered through the normal rate of employee turnover and Sauder's use of temporary employees.

Sauder Woodworking Co. is North America's largest producer of ready-to-assemble furniture and the nation's fifth largest residential furniture manufacturer. Sauder divisions include Sauder Global Sourcing (formerly Studio RTA), an importer of home office and entertainment RTA furniture and seating; Progressive Furniture Inc., importer of wood case goods; and Sauder Manufacturing, a leading manufacturer of church, educational and health care seating.