Herman Miller cuts jobs; Steelcase may

GRAND RAPIDS, Mich. (WOOD) - West Michigan-based furniture manufacturer Herman Miller, Inc. plans to cut between 400 and 650 jobs as one of its competitors, Steelcase, could be announcing layoffs soon as well.

A Herman Miller spokesman tells 24 Hour News 8 that among the 400 to 650 jobs planned to be eliminated, 200 to 400 are expected to be manufacturing layoffs.  The company announced a voluntary separation program Tuesday that would pay employees willing to leave a 50 percent bonus on their severance.  

Most of the jobs lost will be in West Michigan, the spokesman said, but not all of them.  Herman Miller employs 4,500 people in the region and an additional 2,000 elsewhere around the U.S. and internationally.

Steelcase confirmed to 24 Hour News 8 that it will send a WARN letter Wednesday, alerting employees to the possibility of layoffs.  

"While we will take multiple actions to avoid an involuntary layoff, including releasing most temporary employees currently working in our plants, we must be ready in the event that a layoff becomes necessary."

Up to 300 production jobs may be cut at Steelcase.  Company spokeswoman Jeanine Holquist said the job cuts would be a last resort, and that the company would cut temporary workers first.  Buyouts are a possibility there as well, she said.

Both companies cited the global financial crisis as reasons for the cuts or potential cuts.  In a release, Herman Miller leaders specifically cited a decline in orders.  Still leaders of both firms say the companies are fiscally sound but have to respond to outside forces.

West Michigan's four large office furniture manufacturers -- Steelcase, Herman Miller, Haworth and Knoll -- employee roughly 12,000 people in the region.  In 2003, the four were estimated to employ roughly 14,000.  Steelcase is the largest manufacturing employer in the region and Herman Miller is second.  

Manufacturers employ roughly a quarter of the West Michigan workforce.