Electrolux to slash 2,000 jobs as profits sink

Electrolux to slash 2,000 jobs as profits sink
Swedish home appliance maker Electrolux plans to slash 2,000 jobs on the heels of disappointing third quarter results, the company announced on Friday.

While earnings from operations in North America were strong, Electrolux’ results were hit by lacklustre demand in Europe, with profits at the white goods maker slumping by nearly 30 percent.

Currency fluctuations also had a negative impact on earnings, the company said.

The company also announced a cost-reduction programme that would kick in during the fourth quarter of 2013 and mainly affect operations in Europe, the Middle East and Africa.

“Approximately 2,000 employees are affected by these actions,” the company said in a statement.

The company unveiled the programme as it released figures for the third quarter, showing net sales rising by just 0.3 percent from the level a year earlier to 27.1 billion kronor ($4.3 billion).

The company reported net profits of 655 million kronor during the quarter, a drop of 28.9 percent from the same period in 2012.

“Demand in several of Electrolux core markets in Europe continued to decline,” the company said, saying sales in western Europe dropped one percent during the quarter from a year earlier.

CEO Keith McLoughlin did his best to view the disappointing results in a positive light.

“The difficult measures announced today combined with our strategic focus on growth in emerging markets and increased consumer relevant product innovations make us convinced that Electrolux is well positioned to meet and exceed our long-term key financial targets,” he said in a statement.

Electrolux currently employs 60,200 people globally.

AFP/The Local/dl

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