Ashley Furniture, the world’s largest furniture maker, is set to lay off 266 employees at its Mesquite, Texas, manufacturing plant by May 2026. The cuts come as the company consolidates operations to boost efficiency amid shifting market dynamics.
In a Worker Adjustment and Retraining Notification (WARN) filed with the Texas Workforce Commission, Ashley Furniture cited the consolidation of its Mesquite facility as the reason for the layoffs. The company aims to transfer production to other Ashley manufacturing locations.
“Ashley is consolidating manufacturing operations at its Mesquite, Texas facility with production at other Ashley manufacturing locations. Manufacturing operations at the Mesquite facility will conclude May 7, 2026,” the company stated. Affected employees will have opportunities at other Ashley facilities, including the Mesquite Distribution Center.
The layoffs will affect various roles, including 109 upholstery training workers, 31 machine operators, 24 packing employees, inspectors, quality supervisors, and material handlers.
The move comes as the home furnishing sector faces headwinds. Mortgage rates remain around 6%, and pending home sales were down 5.8% year-over-year, according to February data from the National Association of Realtors. These factors have contributed to a slowdown in Americans moving, impacting the demand for home furnishings.
Ashley’s restructuring follows similar moves in the industry, including store closures by IKEA and layoffs in the auto parts and logistics sectors. These shifts signal a broader recalibration of U.S. manufacturing as companies adapt to changing market conditions.
The company says the move will allow it to optimize its manufacturing footprint, vertically integrate its facilities and strengthen long-term operational efficiency.
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