Home appliances maker Electrolux to cut up to 4,000 jobs after heavy losses

“The majority of the targeted cost savings will be realised in business area North America,” the company said. Electrolux added that “3,500-4,000 positions will be affected” by the cost-cutting programme.

The company also said that Electrolux’s North American business alone reported a loss of 1.2 billion kronor or $109 million. The region, the company said, “continued to be heavily impacted by supply chain imbalances resulting in a significantly elevated cost level”.

Electrolux had incurred the losses even as its revenue grew to 35.2 billion kronor, up from 31 billion for the same period a year earlier. Then, the company had attributed the sales growth as “mainly a result of strong price execution across all business areas”.

“In the third quarter, the weaker market environment in combination with supply chain imbalances resulted in significantly lower volumes and operational inefficiencies that led to breakeven earnings, excluding the one-time cost to exit the Russian market,” Chief Executive Jonas Samuelson said.

In July, Electrolux had announced the launch of its first experience center in India that also marked the re-entry of the white goods company after it divested its India business in 2005.

Electrolux will introduce a range of solutions for refrigeration, fabric care including washers and dryers, air purification and conditioning, dishwashing, cooking, and vacuum cleaner in a phased manner starting from July through to October 2022, the company said in an announcement. This launch signals the company’s entry into the Indian consumer durables market, via an omni-channel retail approach.

(With agency inputs)