Ashley Furniture has no plans to lay off employees in Wisconsin or elsewhere, according to one company official.

An article Monday in the Wisconsin State Journal said the Wisconsin Economic Development Corp. had approved a $6 million tax incentive that would allow the company to eliminate half of its workforce in the state — or around 1,900 of its total employment of 3,800.

But Ashley attorney Bill Koslo stated that rather than reducing its workforce, the company is actively looking for ways to increase Wisconsin jobs.

“Ashley has guaranteed to make new investments in Wisconsin of over $34.9 million. It has also agreed to donate 100% of all state funds it receives to the city of Arcadia for a flood control project that, when completed, will provide the basis for adding new jobs,” Koslo said.

According to the Journal, as approved by the Wisconsin Economic Development Corp. board, the award would allow the Arcadia-based furniture maker to proceed with a $35 million expansion of its headquarters as long as it keeps at least 1,924 jobs in the state, but it wouldn’t require Ashley to create any new jobs. Instead, the article states that the agreement grants Ashley license to lay off half of its current 3,848 Wisconsin-based workers in exchange for an enterprise zone tax credit.

Koslo said the agreement protects Ashley in case of unforeseen circumstances.

“The job guarantee is a safe harbor number describing the minimum number of jobs that must, at all costs, be maintained even in the event of a significant catastrophe or a severe unexpected downturn in the economy,” Koslo said. “The important fact being disregarded by the press is that if Ashley does not meet all of the grant requirements, it will have to pay the state back 100% of all grant funds.”

Just because the agreement would allow the company’s employment to dip that low before the payback is triggered, doesn’t mean the company intends to reduce employment, he said.

He said that under current agreements, Ashley would donate the state money to the city of Arcadia for the flood control project. But if the company didn’t meet the grant requirements, it would have to pay back the money from its own coffers.

“The job guarantee just sets the base line of the risk Ashley was willing to accept as a Good Samaritan to the City of Arcadia. It is Ashley’s intent to add jobs at all of its locations,” Koslo said.

In information posted on the WEAU 13 News, the NBC affiliate in Eau Claire, Wis., the company provided more details about the flood control project, an overview of its community contributions and a glimpse at the growth plan for its Arcadia and Whitehall facilities.