Swedish appliance manufacturer Electrolux revealed its intention last week (October 26) to cut approximately 3,000 jobs while reporting reduced sales in the third quarter.
Photo: Electrolux Group
Citing sustained weak consumer demand and competitive market pressures, Electrolux Group aims to intensify cost-cutting measures to rejuvenate its margins. This round of measures is expected to impact around 3,000 positions. During morning trading on the Stockholm stock exchange, Electrolux shares plunged by more than 11 percent.
In the third quarter, the firm recorded a nearly eight percent sales drop to 33.4 billion kronor ($3 billion) compared to the same period in the previous year.
In October 2022, Electrolux had declared its plans to cut 4,000 jobs worldwide, primarily in North America. Subsequently, in February this year, the company made public its decision to cease production at one of its two Hungarian plants, affecting 650 employees.
Electrolux experienced a surge in demand during the pandemic as homebound consumers focused on enhancing their living spaces. However, the company grappled with supply-chain disruptions and is currently facing challenges adapting to declining demand.
Source: www.economictimes.indiatimes.com