JELD-WEN's Layoff Math: More Than Just "Market Headwinds"
JELD-WEN, the window and door manufacturer, just announced it's laying off 850 employees across its North American operations. That's an 11% haircut to their North American and corporate workforce. The timing isn't exactly a shocker, given their third-quarter earnings report showed a hefty $378 million net operating loss. But let's dig into these numbers a bit, because the story is more nuanced than the company's explanation suggests.
Revenue Decline vs. Cost Pressures
The company line, according to CEO William Christensen, blames “persistent market headwinds and price-cost pressures,” including inflation and tariffs. Okay, let's unpack that. Their third-quarter net revenues decreased by 13.4%, or $125.2 million. The North American operations took the biggest hit, with a 19.4% decline, translating to $131.8 million.
Now, Christensen mentions tariffs. JELD-WEN estimates a $45 million annualized impact from tariffs, with about $17 million expected in this year’s results. While $17 million isn't pocket change, it doesn't fully explain a $131.8 million revenue plunge in North America. Something else is at play here. Is it "low market demand," as they claim? Perhaps. But I've looked at enough earnings reports to know that "market headwinds" can be a convenient scapegoat for deeper operational issues. What specific product lines are underperforming? Are they losing market share to competitors? The report doesn't say, which raises more questions than answers.
It's also worth noting that European net revenues increased by $6.6 million to $263.3 million. So, while North America is struggling, Europe is showing growth. This discrepancy (and it is a significant one) makes you wonder if the problems are localized to North America. Perhaps there are regional differences in demand, or maybe their European strategy is simply more effective.
The Ghost of Layoffs Past
This isn't JELD-WEN's first rodeo with layoffs. In March 2025, they shuttered an Iowa factory, axing 298 jobs. Before that, November 2024 saw 152 people laid off, also in Iowa. And in April 2024, two plants in California and Wisconsin closed, impacting 450 jobs. These aren't isolated incidents; they paint a picture of a company struggling to adapt. You can't just keep cutting costs and expect long-term growth. At some point, you have to address the underlying issues.
They opened a Statesville plant in 2021 with a $7 million investment and promises of 235 new jobs. But how secure are those jobs now? Are they on the chopping block next? It's hard to say, and JELD-WEN isn't exactly forthcoming with details. The Charlotte manufacturer to lay off 850 people companywide amid revenue slump - Charlotte Observer couldn't even get a comment from them. That kind of silence doesn't exactly inspire confidence.
JELD-WEN's net revenues last year were $934.7 million, compared to $809.5 million reported on Tuesday. So, while they had a good year last year, this year is shaping up to be a different story. The question is, can they turn things around? Or are these layoffs just a temporary fix for a deeper, more systemic problem?
A Classic Case of Cutting Costs Instead of Confronting Problems?
The 850 layoffs are a symptom, not the cure. JELD-WEN needs to do more than just trim the fat. They need to figure out why their North American operations are underperforming compared to their European business. Are they investing enough in innovation? Are they adapting to changing consumer preferences? Are they simply losing out to competitors with better products or more effective marketing? These are the questions they need to answer, and quickly, before more jobs are lost and more factories are shuttered. Because, frankly, these numbers don't lie: something is fundamentally broken in their North American strategy.
