Bad news will color the holiday weekend for about 400 employees of American of Martinsville. The furniture workers learned Wednesday that they will lose their jobs by the end of August.

About 300 workers will continue at the company’s Redd Level plant in Henry County. The workers affected produce wood furniture for American. Those who will remain make upholstered furniture in the same facility.

The company’s markets include the hospitality industry, including major hotel chains, and senior living facilities.

American plans to shift the bulk of its wood furniture production overseas.

Other furniture manufactures in Henry County already have made that transition, which they say is necessary to remain competitive, and have made similar job cuts.

Noel Chitwood, American’s president, said many of the workers who will lose their jobs are long-time employees — a reality he said made the decision even tougher.

“We’ve had generations of workers at American of Martinsville,” he said. “That makes this even more painful.”

Bobby Mims, vice president of human relations, said the company will apply for federal Trade Adjustment Assistance for the employees facing unemployment during tough economic times.