In a devastating blow to Eastern Ontario’s manufacturing sector, Dorel Industries announced today it will shutter its Cornwall, Ontario plant as part of a sweeping restructuring of its home furnishings division. The closure, scheduled for early 2026, will eliminate approximately 650 jobs in a community already struggling with industrial contraction.
“After exhausting all other options, we’ve made the difficult decision to wind down our Canadian manufacturing operations,” said Martin Schwartz, Dorel’s CEO, during this morning’s investor call. “Global market pressures and rising operational costs have made domestic production increasingly unsustainable for our business model.”
The Cornwall facility, which has manufactured ready-to-assemble furniture for over four decades, represents one of the last major domestic production centers for Dorel’s Home segment. Workers leaving the facility today appeared visibly shaken, with many expressing concerns about finding comparable employment in the region.
“I’ve been here 22 years,” said Michael Desjardins, a production supervisor at the plant. “My father worked here before me. This isn’t just jobs being lost—it’s generations of manufacturing expertise disappearing from our community.”
According to CO24 Business analysis, the closure follows a troubling pattern in Canadian manufacturing, where the sector has shed over 27,000 jobs in the past year alone. Dorel’s decision mirrors similar moves by furniture manufacturers seeking to cut costs by shifting production to facilities in Mexico, Vietnam, and Eastern Europe.
Cornwall Mayor Justin Townsley called the announcement “deeply concerning” and confirmed the city has already initiated discussions with provincial officials about transition support for affected workers. “These are skilled people who have built careers here. We’re committed to ensuring they receive every possible resource for retraining and placement.”
Industry analysts note Dorel has struggled with profitability in its Home segment, posting a 12% revenue decline in the most recent quarter. The restructuring is expected to generate approximately $28 million in annual savings once fully implemented, though the company will incur one-time charges of approximately $42 million related to severance and facility closure costs.
The United Steelworkers union, which represents the plant’s workforce, expressed outrage at the decision. “Dorel received significant government support during the pandemic,” said regional representative Marty Warren. “Now they’re abandoning the very workers and community that helped them weather that crisis.”
For Cornwall, a city of 48,000, the economic impact extends far beyond direct job losses. Local economic development officials estimate the plant closure could affect another 400-500 jobs in supporting industries and services throughout the region.
As manufacturing continues shifting away from traditional North American bases, communities like Cornwall face challenging questions about economic identity and future prospects. Will retraining programs effectively transition workers to new opportunities, or will this closure accelerate population decline in a region already fighting to retain younger residents?
What remains clear is that for hundreds of families in Eastern Ontario, the landscape of possibility has suddenly and dramatically narrowed.
