Simmons to cut salaried work force by 20%

Move necessary to weather downturn, company says

Furniture Today Staff -- Furniture Today, 11/14/2008 8:52:07 AM

ATLANTA — Bedding giant Simmons said today it will reduce its salaried work force by about 20% in response to the challenging economic environment.

Simmons didn't disclose how many employees would be affected. It said the reduction plan will include both voluntary and involuntary layoffs, and will affect all levels and divisions of the company.

"The decision to move forward with a workforce reduction is never easy, but we determined that it was necessary in order for Simmons to weather the economic downturn and be properly positioned when the economy recovers," said company President Steve Fendrich.

"This past year has been very difficult for the entire bedding industry, which, in turn, has affected our retail customers and our company. Notwithstanding these reductions, Simmons will continue to provide customers with the superior quality, service and support for which Simmons is known in the industry," he said.

Simmons said it will provide severance benefits, outplacement assistance and access to the company's Employee Assistance Program, which includes job, financial and personal counseling.