Electrolux is cutting more than 3,000 jobs as plunging demand for electrical appliances leaves the group short of its profit targets for the year.
Even with the Christmas rush, the Swedish group is facing a loss-making December. Having generated operating income of Skr2.7bn (£220m) in the year to November, it has not hit its expected annual target of Skr3.3bn to Skr3.9bn, the group said yesterday.
The redundancy programme will cost Skr1.2bn in the first year and will save Skr1.1bn annually from 2010. Alongside the headcountreductions, Electrolux is continuing its scheme to move production to low-cost countries.
The company employs 57,000 around the world, of whom 600 are in the UK.
It has already put in place acost-cutting plan this year, including closing a factory at Spennymoor, in County Durham.