Dorel Layoffs: 5% of home furniture division axed, part of restructuring

Dorel Industries Inc. (Dorel) has eliminated approximately five per cent of its home furniture division (Dorel Home) as part of a restructuring plan.

What’s happening at Dorel?

In its Q4 2023 earnings release, the Montreal-based company said it initiated the plan in the quarter — resulting in a restructuring charge of US$4.5 million.

“We remain convinced [that] we are on the path to a turnaround and expect improvements in 2024, but to a great extent this depends on the overall furniture industry health,” CEO Martin Schwartz said in the release.

“We will continue to seek lower costs through our restructuring plan…[and are] confident we will deliver the turnaround as we did in [Dorel Juvenile] in 2023.”

During a conference call with analysts, Schwartz added that Dorel has also “initiated headcount reductions” at its juvenile segment, which sells a variety of children’s products.

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Impact on Canadian staff

It remains unclear if Canadian employees at Dorel have been let go.

In addition to dozens of workers in Quebec, the company claims on its website that it employs more than 375 people at its manufacturing facility in Cornwall, Ontario.

Termination agreements for Dorel employees

In Canada, non-unionized employees at Dorel are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance pay for manufacturing sector staff
• Rights to severance for provincially regulated employees
• Severance packages during mass layoffs

Major layoffs continue

The job cuts at Dorel come amid a flurry of layoffs in 2024.

Big names, including TC Energy, Electronic Arts, Rivian, Sony, Vice Media, BuzzFeed, Nike, Cisco, Catalent, BlackBerry, PayPal, UPS, and Microsoft, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Fidelity International laying off 1,000 workers, part of cost-cutting plan
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.