Swedish home appliance maker Electrolux announced on Friday that it would lay off up to 4,000 jobs as the group suffered heavy losses in the third quarter as part of a restructuring program.
Swedish Electrolux said it would cut up to 4,000 jobs in the third quarter due to worsening market conditions and massive losses. In the third quarter, Electrolux posted a loss of SEK 65 million or $ 55 million, compared to a net profit of SEK 1.1 billion in the same period last year. After suffering heavy losses, Electrolux decided on a cost-cutting program first announced in September.
“The majority of the targeted cost savings will be realized in business area North America, 3,500-4,000 positions will be affected by the program,” AFP reported the company as saying.
The company also said it reported a loss of 1.2 billion crowns in Electrolux’s North American business alone. According to the company, the region “Still suffers greatly from imbalances in supply chains, which significantly increase cost levels.”
“Market demand in both Europe and North America for the full year of 2023 is expected to further deteriorate, i.e. be negative year-over-year,” Chief Executive Jonas Samuelson said in a statement.
From July to October 2022, Electrolux will phase out a range of refrigeration and fabric care solutions, including washers and dryers, cleaning and air conditioning, dishwashers, dishes, and vacuums, the company said. This launch signals its entry into the Indian consumer durables market through a multi-channel retail approach.
Electrolux announced that it had opened its first experience hall in India in July, which is also the return of a home appliance company that sold off its Indian business in 2005.
“In the third quarter, the weaker market environment in combination with supply chain imbalances resulted in significantly lower volumes and operational inefficiencies that led to breakeven earnings, excluding the one-time cost to exit the Russian market,” Chief Executive Jonas Samuelson said.
