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Electrolux cuts 3,000 jobs worldwide

Electrolux cuts 3,000 jobs worldwide
AP
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First Published: Mon, Dec 15 2008. 02 15 PM IST
Updated: Mon, Dec 15 2008. 02 15 PM IST
Stockholm: Swedish appliance maker Electrolux AB on Monday said it will lay off more than 3,000 staff globally because of a slump in the market.
Electrolux spokesman Anders Edholm said the layoffs represent around 5% of the company’s total work force of 57,000.
Edholm said demand in both Europe and North America has been declining for some time and fell sharply in the second half of November and in December.
As a result, Electrolux won’t reach its previous forecast of an operating profit for the year of between $411 million and $486 million.
It said operating profit had reached $337 million by the end of November and could be negative in December.
The layoffs will come in the fourth quarter 2008 and in 2009.
Edholm declined to specify how many people would leave specific plants. The company said it expects to save $137 million a year from 2010 because of the measures.
Electrolux said it will also continue its previously announced plans to move production to low-cost countries, which will reduce the number of employees further.
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First Published: Mon, Dec 15 2008. 02 15 PM IST
More Topics: Sweden | Electrolux | Layoffs | Jobs | Financial Crisis |