Company will make cuts to reduce company costs; layoffs are expected to affect 6.5% of the workforce
Electrolux reported this Friday (27.Oct.2023) that it must lay off more than 3,000 employees in the coming days to reduce costs. According to the company’s CEO, Jonas Samuelson, the layoffs are expected to affect 6.5% of the appliance manufacturer’s workforce. The information is from Bloomberg.
“This is an entirely new downsizing program. We see that this situation of weak demand persists in the short term”, declared Samuelson. Electrolux currently employs a total of 46,000 employees. In October last year, it had already made 4,000 cuts.
According to the company’s CEO, the price of household appliances was under “strong pressure” because Asian companies had less inflationary pressure compared to their European and North American competitors – Electrolux is Swedish.
“We have no other option than to understand that this environment will last for a while longer. Our customers will still have challenges to overcome in the future, so we are acting accordingly”declared Samuelson.