Electrolux would cut up to 4,000 jobs worldwide. Swedish home appliances maker takes big decision amid heavy third-quarter losses.
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New Delhi: Owing to heavy third-quarter losses, Electrolux—a Swedish home appliances maker has decided to slash 4,000 jobs as part of a restructuring programme. “The majority of the targeted cost savings will be realised in business area North America”, AFP reported quoting the company. It asserted that “3,500-4,000 positions will be affected by the programme.
Due to the slowed demand, the company reported massive losses, especially in North America. As per the estimates, inflation and high-interest rates are expected to lead to further declines, reported the news agency.
Earlier this week, tech giant Philips had announced to cut 4,000 jobs as the company faces “multiple challenges” which was reflected in its Q3 earnings.
New Philips CEO Roy Jakobs said the move to improve productivity and agility “includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do not take lightly and will implement with respect towards impacted colleagues.”
The job cuts represent over 5 per cent of the company’s workforce. “These initial actions are needed to start turning the company around in order to realise Philips’ profitable growth potential and create value for all our stakeholders,” Jakobs added.
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The company reported a net loss of 1.33 billion euros ($1.31 billion) compared with a year-ago profit of 2.97 billion euros.
