🔒Danbury’s Ethan Allen trims workforce amid automation, productivity gains

Furniture maker Ethan Allen Interiors Inc. said it has reduced its workforce by nearly 5% over the past year as the Danbury-based company adjusts to increased automation and productivity gains. The company disclosed in a recent regulatory filing that its total headcount fell 4.7%, or by 158 employees, compared with a year earlier. Most of the reductions occurred in its wholesale operations, which lost 121 positions, while retail staffing declined by 37. Ethan Allen ended the September quarter with about 3,189 employees, it said. A company spokesperson said the workforce reductions stemmed largely from “operational efficiencies and streamlined workflows,” including increased automation at manufacturing plants and greater productivity at retail design centers. The company said job cuts at its Danbury headquarters were minimal, noting that the site employs less than 10% of Ethan Allen’s total workforce. Core departments — including marketing, merchandising, product development, technology, finance, business development, human resources and legal — are primarily based in Danbury and provide support for the company’s global operations. The cuts come as Ethan Allen reported softer third-quarter performance in its wholesale segment, which saw written orders decline about 7% from a year ago, partly due to reduced U.S. government contract business. Retail written orders rose 5.2% on higher promotional activity and new product introductions. Chairman and CEO Farooq Kathwari said in a statement that the company remains focused on maintaining a strong balance sheet while investing in design centers, technology and marketing. Ethan Allen’s consolidated net sales totaled $147 million for the fiscal first quarter ended Sept. 30, down 4.8% from a year earlier. Net income was $10.5 million, or 41 cents per diluted share, down from $14.7 million, or 57 cents a year earlier. During the third quarter, Ethan Allen opened new company-operated design centers in Colorado and Canada. Ethan Allen design centers represent a mix of company-operated and independently owned locations. As of Sept. 30, 2025, the company operated 143 retail design centers — 138 in the U.S. and five in Canada — and worked with 45 independently owned design centers across the U.S., Asia, the Middle East and Europe. The company manufactures about 75% of its furniture in North America. Ethan Allen owns and operates 11 manufacturing facilities, including four manufacturing plants, a sawmill, a rough mill and a kiln-dry lumberyard in the U.S., along with three manufacturing plants in Mexico and one in Honduras. It also partners with suppliers in Europe, Asia and other regions to produce and import additional products.