HNI Corporation Plans to Close Wayland Facility in 2027
HNI Corporation announced it will exit its Wayland, New York, manufacturing facility in 2027. The Corporation intends to consolidate production into its other North American facilities over the coming year. HNI expects the consolidation to improve productivity and strengthen operations while meeting capacity requirements and creating enhanced experiences for its customers and trade partners. All products currently produced at the Wayland facility will shift to existing facilities across the HNI manufacturing network, with no anticipated changes in the product portfolio. The Gunlocke brand and its products will continue to be an important part of the HNI portfolio, the company said. "Closing the facility is a difficult decision given the hard work and expertise of the Wayland team. We are grateful for our Wayland members' dedication and craftsmanship, and we are committed to providing support and resources throughout the transition. This is a strategic change that aligns with our continued network optimization journey. We are announcing the consolidation a year in advance as part of our commitment to ensuring a smooth transition for our members and our customers," said Brandon Bullock, HNI's COO. HNI estimates the consolidation will save approximately $7.5M-$8M annually once fully mature. The consolidation of Wayland production into HNI's manufacturing centers of excellence was partially enabled by the strategic integration of Kimball International. Total cost synergies associated with the integration of KII are now anticipated to total $68M by end of 2028, including ongoing initiatives in procurement and the maturation of previously announced network optimization projects. HNI anticipates charges resulting from the consolidation will impact pre-tax earnings by an estimated $14.9M in 2026 and 2027, including $5.7M of non-cash charges. The decision will result in employment terminations of approximately 135 members in Wayland.
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HNI Corporation to Close Wayland Facility by 2027, Resulting in 135 Job Cuts
- Strategic Consolidation: HNI Corporation plans to close its Wayland, New York manufacturing facility by 2027, intending to consolidate production into other North American facilities, which is expected to enhance productivity and meet capacity requirements.
- Financial Impact: The restructuring is anticipated to result in approximately 135 job cuts and incur around $14.9 million in restructuring and depreciation costs in 2026, potentially affecting the company's short-term financial performance.
- Product Stability: All products currently produced at the Wayland facility will be shifted to existing facilities, ensuring no changes to the product portfolio and maintaining the quality and service standards of the Gunlocke brand, thereby enhancing customer trust.
- Transition Support: HNI is committed to providing support and resources to Wayland employees throughout the transition period, aiming to ensure a smooth transition and mitigate the negative impacts of the layoffs.
February 2026 Options Now Accessible for HNI
Covered Call Strategy: An investor can buy HNI stock at $43.37 and sell a covered call at a $45.00 strike price, potentially earning a total return of 3.87% by February 2026, excluding dividends and commissions.
Risk of Expiration: The $45.00 strike price is about 4% above the current stock price, with a 54% chance that the call contract may expire worthless, allowing the investor to keep both the shares and the premium collected.
YieldBoost Calculation: If the covered call expires worthless, the premium would provide a 0.12% additional return, or 0.66% annualized, referred to as YieldBoost.
Volatility Insights: The implied volatility of the call contract is 43%, while the actual trailing twelve-month volatility is calculated at 31%, indicating different market expectations.
