Charlotte Manufacturer to Cut 850 Jobs Due to Revenue Decline
JELD-WEN, a prominent door and window manufacturer headquartered in Charlotte, is set to reduce its workforce by 850 jobs. This decision follows a substantial net operating loss of $378 million reported in its recent third quarter earnings. The layoffs will impact employees across North America.
Job Cuts and Financial Losses
The layoffs represent an 11% reduction in JELD-WEN’s corporate and North American workforce. Currently, the company has about 16,000 employees across both North America and Europe. Specific locations and timelines for these job cuts have yet to be disclosed.
Operations in Charlotte
The headquarters of JELD-WEN is located in southwest Charlotte, where the company employs 279 workers. CEO William Christensen expressed the company’s commitment to optimizing resources in a recent announcement, which also indicated that a strategic review of its European business will take place. Details regarding this review have not been clarified.
Historical Layoffs and Production Challenges
This latest round of job losses marks the second wave of layoffs for JELD-WEN in 2023. Earlier this year in March, the company closed an Iowa factory, resulting in 298 job losses. In 2022, layoffs included 152 jobs lost in Iowa in November and the closure of manufacturing plants in California and Wisconsin, affecting 450 jobs.
Declining Revenue Statistics
- Current net operating loss: $378 million
- Revenue decrease: $125.2 million (13.4%) from last year
- North American net revenues: $546.1 million, down by 19.4%
- Tariff impact: Estimated annualized effect of $45 million
- Investment in Statesville plant: $7 million with plans to hire 235 people
JELD-WEN’s financial troubles stem from persistent market challenges, including inflation in labor and materials, along with rising tariffs. As housing demand diminishes, the company has opted to shrink its workforce to mitigate the fallout from these revenue losses.
Future Outlook
The company expects to sustain further financial strain due to low market demand for new single-family homes and reduced multifamily constructions. These adjustments are essential for ensuring the company’s long-term viability in a challenging economic environment.
