States Industries Inc., the Eugene, Ore., based manufacturer of decorative wood panel products, announced a reduction of staff in response to a weakened market.

The company, which employs 575 people at two facilities in Eugene, Ore., and one in Mocksville, North Carolina, will cut 14 percent of its total workforce as part of a plan to bring production levels into balance with current demand.

The curtailment in personnel is expected to be permanent, but no further reductions are anticipated.

In addition to these changes, States has implemented selective price increases and additional cost reduction strategies.

The decline in homebuilding and remodeling activity has resulted in a corresponding decline in demand for decorative wood panel products. A significant portion of States’ production is used in the manufacture of kitchen cabinets.

States’ other markets include residential and office furniture, architectural woodwork, store fixtures and retail building material stores.

In business for 42 years, States made a similar workforce adjustment following the events of Sept. 11, 2001, and then went on to grow by almost 30 percent during the ensuing housing boom.

“Like all wood product manufacturers, we are looking for the best way to survive the low point of this economic cycle and position ourselves for successful operations in the future,” said Diane Montoya, CEO of States Industries Inc. “We recognize the hardship caused in the families and communities affected by this event, and regret that States has no better alternative in these difficult circumstances.”

In addition to manufacturing decorative veneered panels, States operates an extensive coatings line as well as a component manufacturing facility.

All States’ plants are affected by this reduction in personnel.