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Baker lays off 117 employees, others follow

By Julie N. Chang | The News Herald

Published: November 5, 2008

MORGANTON - Baker Furniture in Hildebran this week laid off 117 employees, including administrative and production workers.

Three other companies in Burke County also reduced their workforces this week by more than 80 workers.

All pointed to the weak economy and slowing industry as factors in their decision.

The employees released at Baker are eligible for severance packages, unemployment insurance and outplacement assistance services, said Todd Weber, a spokesperson for the company.

Baker in July 2007 closed two plants in Mocksville and moved that production to Hildebran.

Valdese Weavers has released approximately 60 of its more than 800 employees, Morganton's N.C. Employment Security Commission Director Chuck Brown said.

President Mike Shelton said the Valdese company restructured its workforce and informed its employees about the changes at the beginning of this week.

"We think we've done what we need to do to react to business conditions," Shelton said.

Adden Furniture in Hildebran laid off approximately 20 of its 150 employees, reported Joanne Bechard, human resources manager at Adden's headquarters in Massachusetts.

Bechard said the company, which produces furniture for colleges, the military and medical facilities, has a seasonal business and regularly lays off employees during lulls in the industry.

Summer is its busiest time of the year, Bechard said. Once business picks up again, the company will rehire or hire employees.

Cherokee Manufacturing in Morganton laid off 20 percent of its 20-person workforce, Production Manager John Bowles said.

The nursery wholesale products company currently has a high inventory in a slowing business, Bowles explained. He hopes normal production levels will return in the next year, at which time he can rehire his employees.

Bowles said the business is focused on hiring locally. With plans to stick around for the "long haul," Bowles said the company has been trying to bring jobs into the county.

The local Employment Security Commission manager said layoffs have been "trending upwards for the past several months and are still trending upwards."

Brown said, "It's always shocking when we see a big lay off, but it's no longer surprising because we've seen so much of that."

He said he's concerned because the number of job orders at the moment isn't particularly high.

"There are still places that we can send some folks, but I'm afraid that's shrinking some too," Brown said.

Reporter Sharon McBrayer contributed to this story.