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In 2022, Electrolux announced the dismissal of 4 thousand employees, now, the company continues with the same scheme, to try to reverse the situation.
This Friday morning (27/10), the Swedish household appliances giant, Electrolux, announced worrying financial results, with an annual drop of 7,9% in its group net revenue. The company recorded revenue of 33,43 billion Swedish kronor, equivalent to US$2,99 billion. The main factor behind this negative performance is the decrease in demand for your products, as consumers seek more affordable options on the market. Because of this, Electrolux will lay off more than 3 employees.
Electrolux revenue suffers a 7,9% drop amid the search for cheaper products
In the midst of this challenging scenario, Electrolux managed to reverse a loss trend, reporting a net profit of 123 million Swedish kronor, in contrast to the loss of 605 million Swedish krona the previous year.
However, this announcement did not prevent the company's shares from falling on the Stockholm stock exchange, with a decline of 13,63%, reaching 89,56 SEK per share.
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VEHICLE ACCESSORIES - FREE MARKET
Restructuring and mass layoff plan
In response to the dismal results, Electrolux unveiled an audacious restructuring plan.
The company's objective is to lay off more than 3.000 employees and various costs, aiming to save between 3 billion and 4 billion Swedish kronor.
This measure, however, is not expected to result in an immediate improvement in profits, as the company anticipates that the cost reduction process will take some time.
Furthermore, Electrolux had already announced the dismissal of 4.000 collaborators in October 2022.
Now, with the new round of layoffs, the company will affect around 6,5% of its workforce, totaling more than 3.000 employees laid off.
Electrolux currently employs around 46.000 people.
The future of Electrolux
Electrolux CEO Jonas Samuelson explained that this new wave of layoffs is a response to persistently weak market demand and ongoing uncertainty.
Samuelson stated: “We have no other option than to understand that this environment will last for longer. Our customers will still have challenges to overcome in the future. Therefore, we are acting according to the moment.”
Electrolux, which is already a consolidated brand in the market of home appliances, now faces significant challenges in adapting to the needs of consumers looking for more affordable products, amid an uncertain global economy.
The impact of these mass layoffs still needs to be assessed as the company continues with its restructuring plan to regain its position in the market.
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