Electrolux to cut more than 3,000 jobs

Leading home appliances maker Electrolux today said it will be trimming its global workforce by more than 3,000 employees primarily in the wake of weakening demand in Europe and North America.

The company has also warned that there could be more job losses as it continues to move production capacity to low-cost countries.

Electrolux in a statement today said that due to weakening demand for appliances in the two last weeks of November and in December, it would not achieve the outlook for the full year of 2008.

"In light of the sharp market decline, Electrolux is reducing the number of employees by more than 3,000 in the fourth quarter of 2008 and in 2009," the firm said.

The firm has about 57,000 employees worldwide.

Electrolux noted that fall in demand for appliances in Europe and North America, in the last two weeks of November, has adversely impacted its sales volume and product mix for the fourth quarter.

For this year, the company had expected to have an operating income (excluding items affecting comparability) of 3.3-3.9 billion Swedish krona.

"Electrolux continues to move production capacity to low-cost countries in accordance with the restructuring programme launched in 2004. The programme, which will be completed in 2009 and 2010, will further reduce the number of employees," the statement said.