Sudden layoff of entire team of 2,700 at US furniture company shocks workforce

The employees had not been given any notice, but were told that the layoff is final and with immediate effect, and that there would be no more benefits.


About 2,700 staff members of a furniture company in Mississippi were sent a text close to midnight informing them that their services were no longer required; and that they need not come to work the following day.

Naturally, the employees were taken by surprise at the sudden decision to shut down operations, without any explanation being given for the same. This prompted an ex-employee — who has been with the Company for about eight years — to file a class-action lawsuit against the Company for violating the Worker Adjustment and Retraining Notification (WARN) Act and failing to give a minimum notice of 60 days, in writing, about the plan to wind up operations.

As per The Guardian, employees of United Furniture Industries received e-mails and text messages that rendered them jobless right before the festive season. Needless to say that the employees find it very unfair.

According to the New York Post, the Company — that supplies reasonably- priced sofas and recliners to Simmons Upholstery — informed the employees that the Company had to take such a difficult decision due to unexpected business situations. They were also told that it is a severance for good and will also mark the end of all benefits, including Cobra.

The drivers were directed to return all the things that were provided to them by the Company, including delivery documents, equipment and inventory, immediately even if the deliveries were not made.

The 20- year old company’s CEO, CFO and VP-sales had been asked to leave earlier this year.

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