SC Furniture Company Cuts 400 Employees to "Adapt to Recent Changes in the International Market" After U.S. Tariffs

SC Furniture Company Cuts 400 Employees to “Adapt to Recent Changes in the International Market” After U.S. Tariffs

Written by Sara Aquino

Published on 17/09/2025 at 19:30

Empresa de móveis de São Bento do Sul, SC, realiza demissão em massa após aumento de tarifas dos EUA. Entenda os motivos, o impacto no setor e medidas adotadas pela companhia. Imagem: Redes sociais/Reprodução

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Furniture Company in São Bento do Sul, SC, Conducts Mass Layoffs After Tariff Increases in the U.S. Understand the Reasons, the Impact on the Sector, and Measures Taken by the Company.

A furniture company, Artefama, located in São Bento do Sul, in North Santa Catarina, announced on Wednesday (17) the layoff of hundreds of employees. The decision comes amid a scenario of falling sales caused by the increase in tariffs on Brazilian products in the United States, a measure that has compromised a large part of the region’s exports.

Impact of International Tariffs

The so-called “tariff hike” implemented by the U.S. government came into effect in August, establishing the highest average taxes on foreign products in over a century.

In the timber cluster of Santa Catarina — which includes São Bento do Sul, Rio Negrinho, and Campo Alegre — about 62% of production is destined for the American market, making the sector particularly vulnerable.

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Restructuring and Adaptation of the Company

The management of Artefama stated that the layoffs are part of a restructuring plan to keep operations running and prepare the company for a return to growth.

“It was a difficult decision, but necessary to ensure the continuity of production and the company’s presence in the municipality,” the company reported.

The process involves adjustments in different areas, including production and administrative sectors, aiming to balance operations in light of decreased export revenue.

Consequences for the Furniture Sector

The impact is not limited to Artefama. According to a survey by Abimci (Brazilian Association of Mechanically Processed Timber Industry), from July 9 to September 15, more than 4,000 layoffs occurred in companies in the sector nationwide.

The segment includes plywood, sawn timber, doors, flooring, and moldings, and employs approximately 180,000 workers in Brazil.

The retraction in exports concerns the sector, which faces cash generation challenges and the need for mass adjustments.

Mitigation Measures

Some industries have adopted temporary solutions to reduce immediate impacts, such as collective vacations, reduced working hours, and collective agreements.

At the same time, they seek to expand markets and strengthen international sales channels, an action that requires planning, time, and investment.

The government of Santa Catarina announced in August an emergency package of R$ 435 million to support companies affected by the tariff hike, with the goal of preserving more than 70,000 jobs linked to the furniture sector in the state.

Future Perspectives

Despite the layoffs, the expectation is that the reorganization will allow the company and the sector to adapt to the new international scenario and resume growth.

Unions and experts highlight the importance of public policies and commercial strategies that minimize impacts on workers and the local economy.

Company Note

Indústrias Artefama S.A. announces that it is promoting an important restructuring to adapt to the recent changes in the international market, which have significantly reduced our sales.

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 cycle of growth. This was a difficult decision but necessary to ensure that we continue producing and maintaining our presence in the municipality.

We are reorganizing our processes and exploring new markets with the goal of gradually recovering our production capacity and, thus, generating jobs again in the future.

We will continue to be committed to this community and confident that this adjustment will pave the way for better days.

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SC Furniture Company Cuts 400 Employees to “Adapt to Recent Changes in the International Market” After U.S. Tariffs

Furniture Company in São Bento do Sul, SC, Conducts Mass Layoffs After Tariff Increases in the U.S. Understand the Reasons, the Impact on the Sector, and Measures Taken by the Company.

Impact of International Tariffs

Restructuring and Adaptation of the Company

Consequences for the Furniture Sector

Mitigation Measures

Future Perspectives

Company Note

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SC Furniture Company Cuts 400 Employees to “Adapt to Recent Changes in the International Market” After U.S. Tariffs

Furniture Company in São Bento do Sul, SC, Conducts Mass Layoffs After Tariff Increases in the U.S. Understand the Reasons, the Impact on the Sector, and Measures Taken by the Company.

Impact of International Tariffs

Restructuring and Adaptation of the Company

Consequences for the Furniture Sector

Mitigation Measures

Future Perspectives

Company Note

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BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

On the coast of China, fishermen received an official reward after finding 10 foreign underwater devices capable of “stealing secrets” in just two years, showing that the silent war for the seabed has already reached the nets of those who rely on fishing.

A view from space, an image made by NASA shows the impressive Richat Structure, a geological formation located in the Sahara Desert, also known as the “Eye of the Sahara.”

In the South Atlantic, three isolated volcanic islands cause the wind to draw perfect spirals visible from space: a rare phenomenon called von Kármán vortex streets forms symmetrical patterns behind the peaks of the South Sandwich Islands and was recorded by the NOAA-20 satellite in 2025.

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