Mohawk will lay off another 40 employees

Mohawk Industries in Waynesboro plans to lay off an additional 40 employees, Councilwoman Lorie Smith confirmed Wednesday, due to lower demand for the company’s products.

“It’s more bad news, but I can’t say that I’m very surprised,” Smith said. “I feel businesses are doing what they have to do to keep profitable at this point.”

Smith said company officials have notified City Manager Mike Hamp of the impending layoffs.

According to another source familiar with the layoffs, the company will have about 120 workers remaining at its Waynesboro facility.

In January, Mohawk laid off 73 people. The company laid off another 50 workers in September 2007.

Mohawk had second quarter net earnings of $46 million, down from net earnings of $89 million for the same period in 2008. The company said industry conditions were weak in the second quarter, and expected those trends The company, in its earnings report, said it expects those trends to continue in the next three months.

The company expects residential declines to stabilize, with signs of improving home sales, while commercial decline is continuing, “and we are adjusting our business to the demand levels,” it said.