By Denny Jacob

Bassett Furniture Industries is trimming its workforce further in an effort to get its cost structure in line with its rate of business, reflecting challenges in the housing market and more judicious spending by consumers.

The home furnishings maker said it expects to record a severance charge of about $500,000 in the current quarter as a combination of layoffs and retirements go into effect. The company didn't disclose how many workers are being affected.

Bassett said it has reduced headcount by 11% over the past year including this latest action.

The workforce reduction will result in about $2.5 million in annual savings. Coupled with earlier efforts, annual savings are now projected to be between $8 million and $9 million.

Bassett in July announced a restructuring plan aimed at lowering costs at a time when challenges in the housing market were pressuring the business. The company said it would close its Noa Home e-commerce business and rationalize U.S. wood manufacturing into one primary location from two locations, among other efforts as part of its five-point plan.

"The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July," said Chief Executive Rob Spilman. "While we have not seen a measurable uptick in orders, the actions that we have already taken have begun to yield better results."

Bassett on Wednesday said it's completed the consolidation of its Virginia-based wood production facilities and that Noa Home has officially shut down and remaining inventory is being liquidated.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

November 20, 2024 09:28 ET (14:28 GMT)

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