JELD-WEN, a significant door and window manufacturer based in Charlotte, plans to lay off 850 employees across its North American locations. This decision follows the announcement of a substantial $378 million net operating loss reported in the company’s third-quarter earnings. The layoffs will result in an 11% reduction in the North American and corporate workforce, adding to the ongoing challenges the company faces.
Company Overview and Operational Changes
Founded in Oregon in 1960, JELD-WEN opened its first window assembly plant in Charlotte in 1962. The company moved its headquarters to Charlotte in 2012, aiming to expand operations and enhance productivity.
- Current workforce: Approximately 16,000 employees across North America and Europe.
- Headquarters: Southwest Charlotte, with 279 employees locally.
In addition to the layoffs, JELD-WEN announced a strategic review of its European operations. CEO William Christensen stated that this review aims to optimize the company’s portfolio and resources to achieve sustainable performance.
Financial Performance and Revenue Decline
In its third-quarter results, JELD-WEN reported a 13.4% decline in net revenues, equivalent to a $125.2 million dip. North American operations were particularly affected, with revenues dropping to $546.1 million—a significant decrease of 19.4%. In contrast, revenue from Europe showed a slight increase, reaching $263.3 million.
Market Challenges Contributing to Layoffs
Several market challenges have contributed to JELD-WEN’s financial difficulties. Key factors include:
- Inflation affecting labor and material costs.
- Recent tariff increases, leading to an estimated annualized impact of $45 million.
- Decreased demand in new single-family home construction and home repairs.
The company previously faced significant workforce reductions this year, laying off 298 workers when it shuttered an Iowa factory. Additional layoffs occurred in late 2024, affecting employees in California, Wisconsin, and Iowa.
As JELD-WEN moves forward, the firm faces challenges in stabilizing operations amid revenue declines and evolving market conditions. The steps taken now, including workforce reductions, aim to mitigate losses and foster long-term viability.
