LEGGET & PLATT FACILITY TO CLOSE.
Seventy-eight employees at the Leggett & Platt production facility have been given notice their jobs are being terminated because the company is shutting down its operations on the corner of South County Line Road and Fancy Farms Road. Leggett & Platt primarily manufactures bedding products. Founded in 1883, the company employs more than 19,000 people, and its headquarters is in Carthage, Missouri. According to an employee, the Plant City location built therapeutic adjustable beds used in hospitals, and adjustable beds for Temper-Pedic mattresses, among other things.
On August 22, Leggett & Platt sent a Worker Adjustment and Retraining Act (WARN) letter to the State Dislocated Workers Unit disclosing it is ceasing production at the facility. The company declared the closure is the result of a consolidation of operations, and will permanently eliminate most jobs at the location. There are currently 82 Leggett and Platt employees who work there. The company expects the first release of employees about October 21. The plan is, the remaining employees will be released by the end of the first quarter in 2025. The positions of employees who will be terminated are in the below job classifications:
Production and Production Support – 69
Clerical and Administrative Workers – 5
Management – 4
In this situation, no labor union functions at the facility, so there are no provisions that allow employees with more seniority to replace less senior employees (aka no bumping rights). According to those at the location there are also more than 25 temporary staff who work there.
The company’s Employee and Labor Relations team released the following statement:
“In January 2024, Leggett & Platt implemented a restructuring plan primarily focused on our Bedding Products business. This plan is intended to better align our business with an evolving competitive landscape and position our company for profitable growth. As part of these initiatives, we are consolidating our manufacturing footprint to better align capacity with regional demand and enhance our efficiency. We recognize the impact that these actions will have on our colleagues at our adjustable bed facility in Plant City, and we take these decisions very seriously. We are committed to treating colleagues exiting our business with compassion and respect. We will provide them with support and resources as they transition to the next step in their careers.” Another communication from Leggett and Platt Human Resources added, “The Company is exploring several sources of outplacement assistance.”
According to Lumber Blue Book, Leggett and Platt’s 2024 sales have dropped $25 million compared to 2023. On January 1, 2024, Leggett & Platt’s stock (LEG) price stood at $26.17 per share. By August 30, it had dropped more than 51 percent, to $12.64 per share.
At quitting time on August 29, several employees declined to comment—at least one out of fear of losing his job immediately. However, others were willing to speak.
“The jobs are moving to Mexico,” Leandro commented. “Everybody is asking, ‘What happened?’”
“We’re in a recession, so business isn’t going as planned,” another employee commented on the condition of anonymity. “Our prices just deflated. That is what they told us that changed. They are just not selling as much as they were.”
“I think it is a shame that they are moving their warehouse and factory here all the way down to Mexico,” Marcus said. “I guess they can get their labor for a cheaper price, but it puts a lot of hard-working people out of work. It’s a shame.”
“Everybody has different opinions of how they feel,” said an employee who declined to give her name. “Some are upset. Some are okay with what is going on because they have better opportunities somewhere else. But, it is what it is.”
