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Furniture Company From Santa Catarina Announces Job Cuts After Direct Impact of Tariffs Imposed by the United States That Dropped Brazilian Exports and Put Thousands of Jobs at Risk in the Furniture Sector.
A furniture manufacturer from São Bento do Sul (SC) announced on Wednesday (17) a mass layoff following a decline in sales caused by the recent “tariff crisis” from the United States on Brazilian products.
The Union of Construction and Furniture Industries (Sindusmobil) estimates more than 300 layoffs.
The company — Artefama Móveis, in operation since 1945 — confirmed an internal restructuring but did not disclose the number of layoffs.
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Dependence on the American Market Pressures the Furniture Pole
The timber cluster in northern Santa Catarina, which includes São Bento do Sul, Rio Negrinho, and Campo Alegre, has strong exposure to the United States.
According to the sector, 62% of local production is destined for the North American market.
With the rise in import tariffs, orders from U.S. customers shrank and disrupted the cash flow of industries in the region.
Besides the drop in orders, business owners report lengthening payment terms and contract renegotiations.
The immediate effect was the reduction of shifts, collective vacations, and now, job cuts in relevant companies in the cluster.
Company Confirms Restructuring and Job Cuts
In a statement, Artefama informed that it is “promoting an important restructuring to adapt to recent changes in the international market that significantly reduced our sales.”
The company added: “As part of this process, it will be necessary to reduce a large part of our team to keep the operation viable and prepare the company for a new growth cycle.”
The manufacturer also mentioned it is reorganizing processes, seeking new markets, and projecting a gradual recovery of productive capacity, with the possibility of rehiring in the future.
No details were provided about affected areas, the timeline for layoffs, or potential support programs for workers.
Chain Reaction: Layoffs and Adjustments in the Country
The reaction is not limited to Santa Catarina. Survey by Abimci (Brazilian Association of the Wood Processed Industry) indicates that between July 9 — the date of the tax announcement — and September 15, the sector recorded at least 4,000 layoffs in Brazil.
The entity gathers companies involved in plywood, sawn timber, flooring, frames, doors, and other items linked to the forest base chain.
The segment employs around 180,000 people in the country.
Companies consulted by sector entities adopted temporary measures to face the loss of competitiveness in the U.S., such as collective agreements, reduced working hours, and granting vacations.
There were also suspensions of work contracts in some cases, while suppliers and customers renegotiated volumes and prices.
‘Difficult Decisions’ and Search for Alternatives, Says Union
The president of Sindusmobil, Luiz Carlos Pimentel, stated that the worsening external scenario directly affected the exporting industries in the region.
According to him, some are without a forecast for future cash generation, leading to emergency cuts.
In his words, companies “find themselves compelled to make more difficult decisions, such as reducing their workforce”.
In an effort to mitigate losses, the union reports that members are seeking new markets and reinforcing international prospecting.
The expansion to other destinations, however, requires time, specific certifications, line adjustments, and logistical costs, which limits a quick replacement of the North American market.
Measures by the Santa Catarina Government to Contain the Impact
In August, the Government of Santa Catarina announced an emergency package of R$ 435 million to support companies affected by the new tariffs.
The set includes tax and financial measures aimed at preserving more than 70,000 jobs linked to the most exposed industries.
Among the planned fronts are the release of export credits, the postponement of ICMS, and financing lines through development banks.
The state administration reports that it is monitoring employment figures in the sector, in dialogue with unions and business associations.
The assessment is that the furniture cluster in the northern part of the state deserves priority attention as it concentrates a significant share of exports to North American clients.
What Does Artefama Say
Artefama reiterated in a statement that the restructuring is necessary to preserve the operation and maintain the company’s presence in the municipality.
“This was a difficult decision, but necessary to ensure that we continue producing and maintaining our presence in the municipality,” the company stated.
The note concludes that the company will remain “committed to this community” and confident in recovery after the adjustment.
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