UPDATE 1-Stanley Furniture to cut 350 jobs

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July 8 (Reuters) - Stanley Furniture Co Inc (STLY.O) plans to cut about 350 jobs at its Lexington, North Carolina plant and consolidate manufacturing operations as part of its ongoing efforts to trim costs after the soft U.S. housing market hurt demand for its products.

The wood furniture maker, which will also eliminate two executive positions, said it will take related pre-tax restructuring and impairment charges of about $6 million to $8 million in the second half of 2008.

Stanley Furniture, which expects annual pre-tax savings of $5 million to $6 million from the restructuring, expects to complete the manufacturing consolidation and transition by Dec. 31.

Sales of discretionary items such as furniture have been hurt as cash-strapped shoppers cut down on their appetite for big-ticket items amid falling home values, rising gasoline prices and tighter lending conditions.

Stanley said it would move its Lexington production to Robbinsville, but will retain its warehousing facility with about 20 associates at a separate location in Lexington.

Responsibilities of the two executive positions being eliminated, vice-president of purchasing and VP of human resources, will be absorbed by other members of the management team, the company said.

The company said it expects to add about 200 new jobs in Robbinsville over the next two years. (Reporting by Dhanya Skariachan in Bangalore; Editing by Gopakumar Warrier)