Magnussen lays off 22 in move to boost efficiency
By Thomas Russell -- Furniture Today, November 23, 2008
HIGH POINT — Case goods importer Magnussen Home said last week it is cutting its work force by 22 people, a 14% reduction of its worldwide staff.
The reduction includes 17 temporary layoffs in its New Hamburg, Ontario, office and five permanent layoffs in its High Point office, including Don Essenberg, executive vice president and chief marketing officer.
The positions in Canada are mostly operational and administrative positions that are expected to be reinstated in about 13 weeks, said President and CEO Richard Magnussen.
In addition to Essenberg, those let go in High Point include Leslie Chastain, merchandising and design manager for case goods and licensed collections; Barry Romberg, product introduction manager; Amber Hayes, director of visual merchandising and showroom management; and Eve Buckle, who handled inventory control for the company's showrooms.
Their responsibilities will be handled by others in the organization, Magnussen said. Some work also may be handled on a contract basis, he added.
The layoffs did not affect operations in the company's California or Vietnam offices.
In a statement, the company said the layoffs are “proactive steps taken to ensure its success in the coming months” by creating a leaner, more efficient organization focused on product development and supply chain management.
“We are not merely ensuring viability,” Richard Magnussen said. “We plan to grow our business as we move through 2009.”
He added that sales this year are expected to be down, but that the company is growing its market share, thanks to its supply chain and product development efforts.
As part of the restructuring, the company has promoted Kelly Magnussen to senior vice president of sales from vice president of accounts and account development. As part of his new role, he will handle certain tasks once done by Essenberg.
Nathan Cressman remains senior vice president of marketing and product development. He and Kelly Magnussen report to Richard Magnussen.
“We are very fortunate to have strong players,” Magnussen said. “I have a lot of people who have stepped up to the plate that I am proud of.”
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