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

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

The company also said that Electrolux’s North American business alone lost 1.2 billion kronor, or $109 million. The sector, the company said, “continues to be heavily affected by supply chain imbalances resulting in significantly increased cost levels”.

Electrolux suffered losses even as its revenue rose to 35.2 billion kronor, up from 31 billion for the same period a year earlier. Back then, the company attributed the sales growth to “primarily the result of strong value execution across all business segments”.

Chief Executive Jonas Samuelsson said, “In the third quarter, a weak market environment in combination with supply chain imbalances resulted in significantly lower volumes and operational inefficiencies, leading to reduced earnings, excluding one-time costs to exit the Russian market. “

In July, Electrolux announced the launch of its first experience center in India, marking the white goods company’s re-entry after selling its India business in 2005.

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

(with agency input)