Home Appliance Maker Electrolux To Cut Jobs As Demand Wanes

Swedish home appliance manufacturer Electrolux AB ELUXY has initiated a cost reduction plan and North American turnaround program in the wake of a demand slump.
The proposed plan is expected to affect 3,500 – 4,000 positions.
The company said it would take a restructuring charge of SEK 1.2 billion - SEK 1.5 billion in the final three months of 2022.
The cost reduction from the program includes and replaces the previously communicated benefits from the SEK 8 billion global re-engineering investments.
The cost reduction element will focus on three areas: eliminating cost inefficiencies in the supply chain, leveraging the organizational changes that took effect on July 1 this year, and optimizing R&D and marketing investments.
Total savings from the program are estimated to be more than SEK 7 billion.
The company reported an operating loss in the third quarter of SEK (385) million.
Price Action: ELUXY shares closed higher by 1.98% at $23.74 on Thursday.