Furniture giant Ashley closes Texas plant cutting 266 jobs as furniture slump deepens|JINHAN FAIR Weekly News

2026.03.26

Furniture giant Ashley is set to lay off 266 employees as it closes its manufacturing facility in Mesquite, Texas, as part of a broader consolidation strategy.

The company will permanently end production at the site on 7 May 2026, shifting operations to other facilities. Some affected employees have been offered alternative roles within the company or positions at a nearby distribution centre, while others will receive severance if they do not transition.

Ashley, one of the world's largest furniture manufacturers with over 35,000 employees globally, said the move is aimed at streamlining operations. The largest group of impacted workers includes upholstery trainees, alongside machine operators and packing staff.

The decision comes amid ongoing challenges across the furniture and home furnishings sector, where demand has weakened following a post-pandemic surge. A sluggish housing market, rising costs and new tariffs on materials and upholstered furniture have further pressured the industry.

Ashley's move reflects a wider trend of restructuring across the sector, with other major players also closing facilities and adjusting operations in response to declining sales and shifting market conditions.