The furniture industry saw a turbulent year in 2023. It’s because many high-profile furniture companies went out of business, along with a number of other closures and Malouf Layoffs. In January 2023, Malouf Home, a supplier of mattresses and case goods, downsized employees at its Utah headquarters.
Malouf Companies was founded in 2003 by Sam and Kacie Malouf. It is a manufacturing company situated in Logan, Utah. Malouf is a fully integrated manufacturer with a portfolio of brands. It includes LinenSpa, Lucid, Malouf Home, Brookside, Mobix, Cirina, and more. With over 1,700 employees, Malouf brings in over $358 million a year in sales. In this article, we learn everything about the layoffs at Malouf in detail.
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About the company
Malouf started in 2003 by providing clients with specialized bedding and sheets. Over two decades, the company expanded its offerings to include a wide range of items and services.
Malouf purchased the regional furniture stores Downeast and Salt Flat in 2020. As stated in a 2021 news release, Malouf also purchased Utah-based companies. They are Impact Suite, Tamarak Capital, and Citrus Pear. The company proposed an “updated corporate identity” and a name change from “Malouf” to “Malouf Companies.”
In addition to its business operations, Malouf has a foundation. It is dedicated to preventing child sexual exploitation. Through the Malouf Foundation, the business has also taken a leading role in regional, national, and worldwide initiatives to end child sexual exploitation and abuse.
The foundation has helped with the renovation of the premises for the Cache County Children’s Justice Center, which opened in 2021.
Malouf closed two warehouses
Malouf announced on June 26, 2020, that it would close its Tremonton and Logan warehouses. They had plans to convert the Logan location into a returns and logistics support center.
The majority of their Western distribution was transferred to a newly acquired facility in Delano, California. The city had a population of around 53,000 and was located around 30 miles north of Bakersfield.
At that time, 52 of the bedding company’s 345 Utah staff members worked in warehouse operations. The company stated that those positions would be eliminated.
According to CEO Sam Malouf, “Doing such things is never something a business wants to do. But an emerging business must be sustainable over the long run.”
At the Logan location, a new returns and logistics support center was run by a few of the impacted staff. Thus, they retained their jobs. Others were given the option of relocating to the new California plant or staying at their current locations in North Carolina, Texas, and Ohio.
Logan served as the company’s initial shipping center for nationwide distribution. As the Malouf company grew, its distribution base extended to around 5.3 million square feet in five important sites.
Human resources also provided placement services to help employees find positions in other internal departments or outside firms in Cache Valley. All staff retained their jobs during the 90- to 120-day transition phase. If they decide not to transfer, the company will provide additional severance money. It was equal to one month’s income.
Malouf Layoffs 2023
Malouf companies laid off an unspecified number of people. The layoff happened in all sectors at their corporate headquarters in January 2023. According to a human resources official at the company, people affected received severance payouts.
CEO Sam Malouf released a statement on the layoffs,
“We have made a difficult choice to decrease the workforce at corporate headquarters. We discontinue exploratory projects, building on our restructure from November 2022.”
“As CEO, I accept the blame for the decisions that have led us here. This choice was made to cut operating costs and concentrate on our core business. We regret having to make this move, but I feel it puts us in the best possible position moving ahead, he added.
Similar to several businesses in Utah and elsewhere, Malouf first saw fast expansion. Then, it started to deal with shifting customer needs and market conditions. “The whole company worked intensely to tackle those changes. But so much was beyond our control,” stated CEO Sam Malouf.
For privacy reasons, a corporate spokesperson declined to provide the number of people who were laid off. Based on Malouf’s website, the company employs approximately 1,200 people across three corporate and six distribution sites.
In the letter dated January 20, 2023, Sam stated that the choice to downsize was not a reflection on the staff.
“They have had a significant influence on both our business and the community,” he said. “They are talented and dedicated.” “Kacie and I are extremely thankful to everyone who has helped Malouf get to where he is today. Also, we thank those who will continue to pave the way for our new future. Thank you for the kindness, hard work, and devotion you show Malouf, our clients, and partners every day.”
Conclusion
Dozens of those affected posted on social media to announce they had been laid off and were searching for new jobs. The business did not offer an exact number of people who were let go. However, some estimates indicate up to 25% of the workforce was let go.
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