Appliance Maker Electrolux to Cut Up to 8% of 50,000 Staff

  • Job cuts form part of a wider cost-reduction program
  • Company reported an operating loss in the third quarter

The Electrolux job cuts translate to about 7% of its 50,000 workers.

Photographer: Bartek Sadowski/Bloomberg

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A slump in demand for household appliances has prompted Swedish manufacturer Electrolux AB to scale back its North American operations in a move that affects as much as 8% of its 50,000-strong workforce.

The job cuts of 3,500 to 4,000 employees form part of a cost reduction problem that was announced alongside Electrolux’s third-quarter earnings. The company, which makes cookers, hobs, microwave ovens, freezers and dishwashers among other appliances, said it will take a restructuring charge of between 1.2 billion kronor ($109 million) and 1.5 billion kronor in the final three months of the year.