The company will merge carpet tufting operations in Eton, Ga., into its tufting, dyeing and finishing facility in Atmore, Ala. It also will move its tufting and custom rug operation into its West Coast dyeing and finishing facility in Santa Anna, Calif.
The cuts will put about 80 employees out of work, in addition to 110 people who were laid off earlier this year.
The moves should be complete early next year.
Dixie Group said the consolidations will help cut its costs as sales of homes continue to decline and credit conditions continue to deteriorate.
“Although the costs of these consolidations will have a negative impact on results until they are completed, these actions should reduce ongoing fixed costs, improve operating efficiencies in both our East Coast and West Coast operations, and significantly improve our operating results, with only a slight, if any, impact on our production capacity and flexibility,” said K. Frierson, chairman and CEO of the Chattanooga, Tenn.-based company.
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