Stockholm, Sweden — Electrolux will pink-slip 3,000 employees worldwide beginning this quarter in reaction to a “sharp market decline” in North America and Europe.
It is not yet clear how many positions will be lost in the United States.
As a result of the downturn, the major appliance maker said it will no longer be able to meet its projected operating income range of $410 million to $490 million for 2008. Operating income year to date had only reached $340 million through November.
Demand for white goods in North America and Europe “declined considerably” during the last two weeks of November and continues to show a “sharp decline” in December, the company said.
The downsizing will begin this quarter and continue into 2009, affecting all operations worldwide. Electrolux described the action as an intensification of year-long cost-saving activities that included prior headcount reductions and an ongoing effort to move its manufacturing operations to low-cost countries.
The company will take a $150 million charge against operating income in the fourth quarter for the layoffs, which are expected to save the business $140 million a year.
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