Electrolux to shed 400 jobs
Despite fourth quarter profits that exceeded expectations, white goods giant Electrolux has said it plans to shed 400 jobs across Europe.
The company posted a pre-tax profit of 1.576 billion kronor, down from 1.971 million kronor for the same period a year earlier but almost half a billion kronor above expectations.
But while the company said it was pleased with developments worldwide, it described its performance in Europe as "a disappointment", with costs for many products higher than anticipated.
"During the last two years, we have been working hard to reduce complexity in the European appliances operation. As a result, we are now, among other things, initiating a comprehensive program this spring to reduce the number of employees by about 400," said CEO Hans Stråberg in a statement.
Spokesman Anders Edholm told news agency TT that the cutbacks would primarily affect office workers across the company's European operations.
He added that it was too early to say whether any of the company's 200 Swedish office workers would be affected by the savings package, which is scheduled to be put in place before the summer.
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The company posted a pre-tax profit of 1.576 billion kronor, down from 1.971 million kronor for the same period a year earlier but almost half a billion kronor above expectations.
But while the company said it was pleased with developments worldwide, it described its performance in Europe as "a disappointment", with costs for many products higher than anticipated.
"During the last two years, we have been working hard to reduce complexity in the European appliances operation. As a result, we are now, among other things, initiating a comprehensive program this spring to reduce the number of employees by about 400," said CEO Hans Stråberg in a statement.
Spokesman Anders Edholm told news agency TT that the cutbacks would primarily affect office workers across the company's European operations.
He added that it was too early to say whether any of the company's 200 Swedish office workers would be affected by the savings package, which is scheduled to be put in place before the summer.
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