HNI Corporation announced on January 8, 2026 that it will shut down its Wayland, New York, manufacturing facility in 2027, moving all production to its remaining North American plants. The decision is part of the company’s “network optimization journey,” aimed at creating manufacturing centers of excellence and improving overall productivity.
The consolidation is expected to generate annual cost savings of $7.5 million to $8.0 million once fully mature. HNI estimates that the transition will incur $14.9 million in pre‑tax charges over 2026 and 2027, including $5.7 million in non‑cash adjustments. These figures reflect the upfront costs of re‑routing production lines, relocating inventory, and providing transition support to affected employees.
The move is closely tied to synergies from recent acquisitions. HNI’s integration of Kimball International, completed in June 2023, is projected to deliver $68 million in total cost synergies by the end of 2028. In December 2025, HNI also acquired Steelcase Inc., a transaction that is expected to further enhance profitability and expand its product portfolio. The Wayland closure therefore supports a broader strategy of consolidating operations to capture these integration benefits.
The announcement includes a workforce impact: approximately 135 employees at the Wayland site will be terminated. HNI has committed to providing support and resources to those employees during the transition. Despite the plant shutdown, the company has assured that all products currently manufactured at Wayland—including the historically significant Gunlocke brand—will continue to be produced at other facilities, with no change to the overall product portfolio.
HNI’s two main segments—Workplace Furnishings and Residential Building Products—have shown strong performance in recent periods. The company reported robust earnings growth and margin expansion in fiscal 2024, with non‑GAAP EPS rising 15.5 % year‑over‑year despite lower net sales. In Q3 2025, operating margins reached a new high for the quarter, underscoring the company’s ability to maintain profitability while executing cost‑saving initiatives. The Wayland closure aligns with this trend, reinforcing the company’s focus on operational efficiency and scale.
Chief Operating Officer Brandon Bullock said the decision was “difficult but strategic,” emphasizing the importance of announcing the consolidation a year in advance to ensure a smooth transition. He highlighted that the move is part of HNI’s ongoing effort to optimize its manufacturing network and that the company remains committed to delivering high‑quality products across its brands while supporting employees affected by the change.
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