Electrolux Announces Cost-cutting Initiatives

Electrolux AB (0MDT.L) on Monday announced its decision to cut cost citing weak earnings in the third quarter as well as lower-than-expected product demand due to high inflation and lower consumer confidence.

The initiative, which the company plans to begin immediately, will focus on reducing variable costs, particularly removing cost inefficiencies in supply chain and production.

The company also named Ricardo Cons, current Head of Business Area Latin America, as Head of Business Area North America. Ricardo Cons succeeds Nolan Pike, who is taking up a new position. A new head of Electrolux Latin America is expected to be appointed shortly.

In North America, the company believes that the production transformation with two new facilities and several new product platforms, combined with the particularly challenging supply chain conditions, additional measures are required to return to profitability. Therefore, a turnaround program in the region is planned under the leadership of Ricardo Cons.

Electrolux expects the group cost reduction and the North American turnaround program to contribute to earnings in 2023.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Juul Labs, an e-cigarette maker, said it has reached settlements with more than 5,000 vaping lawsuits in the United States. The cases were related to personal injury, consumer class action, government entity, and Native American tribes. In a statement, the company said it cannot disclose the settlement amount at this time as part of the settlement and court process. Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook. At an event in the factory in Arizona, which was attended by U.S. President Joe Biden, it was also announced that TSMC will invest $40 billion in the new factory. Lidl US has recalled its 8.4 oz Favorina branded Advent Calendar, i.e., Premium Chocolate with a Creamy Filling, citing potential Salmonella contamination, the U.S. Food and Drug Administration said. The products were available for sale at Lidl stores between October 12, 2022 and December 5, 2022. They will have a BEST IF USED BY year of 2023, and barcode number of 4056489516965.
Follow RTT