ZEELAND, Mich. (WOOD) — Two of West Michigan’s major furniture manufacturers are bracing for tens of millions of dollars in cuts.

On Wednesday, Zeeland-based MillerKnoll informed its shareholders it plans to cut $30 million to $35 million from its budget over the third and fourth quarters “given the current macroeconomic backdrop.”

The report showed MillerKnoll recently accrued $500,000 in “restructuring charges.” MillerKnoll defines restructuring charges to “include actions involving targeted workforce reductions.”

MillerKnoll’s plans include offering voluntary retirement packages, organizational restructuring and spending cuts, the financial report shows. The company also said it is focusing more on online sales and “prudently spending on stores more gradually and closing underperforming stores,” but did not disclose where those stores are located.

The company said smaller orders, project delays because of understaffed dealer design groups and customers’ concerns about a potential global recession helped fuel a 17.2% decline in orders in the Americas during the first quarter of fiscal year 2023 compared to the same time a year prior when MillerKnoll was handling “pandemic-driven pent-up demand” for its products. But stronger sales in other markets helped buffer the loss. MillerKnoll says it first quarter consolidated net sales were up 12.3% compared to the same time the year prior.

MillerKnoll said it recently increased its prices to help cover higher commodity costs and rising inflation, and it plans to hike prices on its products again in October to further cover higher costs.

“We will continue to focus on what we can control and manage the business diligently,” the company stated in the report.

Grand Rapids-based office furniture maker Steelcase is also trying to navigate the changing market by making cuts. In a second quarter report to shareholders released last week, Steelcase senior vice president and chief financial officer Dave Sylvester announced the company expected to eliminate up to 180 salaried jobs as part of $20 million in budget cuts in the third quarter. Sylvester said the cuts would come from core business and corporate offices across the Americas.

Sylvester said a recent drop in incoming orders and fewer people returning to the office than expected added to existing inflation and supply chain issues Steelcase has been dealing with throughout the year. Steelcase reported a 20% drop in orders during the first three weeks of the current third quarter compared to the same time last year.

Sylvester expects updated pricing to “more fully offset” Steelcase’s inflationary costs over the coming quarters. He said the company was already scaling back spending but must now cut it further. Steelcase’s Board of Directors adjusted down the quarterly dividend from the previous 14.5 cents per share to 10 cents per share this quarter.

Despite the cuts, Steelcase President and CEO Sara Armbruster said the company’s strategy remains unchanged.

“Looking forward, we continue to believe in the value of people coming together in person to imagine, create, and achieve, which we believe will drive investments to support new ways of working across all of the markets we serve,” she stated in the report.