(CTN News) – Announcing lower sales in the third quarter of 2017, Electrolux, the Swedish manufacturer of home appliances, announced on Thursday that it plans to cut about 3,000 jobs as a result of the lower sales.
Electrolux Group has continued to experience weakness in its consumer demand over the past few months, as well as increased competitive pressure in the market, and it is steps up its cost reduction efforts in order to restore margins as a result,” the company stated in a statement.
Furthermore, according to the press release, the measures were expected to affect “approximately 3,000 jobs” within the company.
It was reported that the company experienced a nearly eight percent decline in sales in the third quarter of 2018, with sales dropping from 33.6 billion kronor ($3 billion) in the third quarter of 2017 to 33.4 billion kronor ($3 billion) in the third quarter of 2018.
In October of last year, the company announced that it would be laying off 4,000 employees globally, mainly in North America, over the next several years, due to declining sales.
As part of its restructuring plans, the Electrolux company announced in February that it would cease production at one of its two plants in Hungary as part of its restructuring plan. At the time of the plant’s closure, 650 people were employed at the plant.
The company reported a net loss for the first three quarters of the year of 1.1 billion kronor, compared with a net loss of 625 million kronor during the same period last year.
In spite of the company returning to the black in the third quarter with a net profit of 123 million kronor, the company recorded a combined loss of 1.1 billion kronor.
There were around 44,600 employees employed by the group at the end of the third quarter of 2014, down from 51,400 a year earlier.
As the pandemic affected housebound consumers, Electrolux saw a boom as they turned their attention to refreshing their homes in order to combat the effects of the pandemic.
There was a disruption to the company’s supply chains, and it now is having a hard time adapting to a weaker demand environment as a result.
There was a drop of more than 11 percent in Electrolux share prices on the Stockholm Stock Exchange during morning trading this morning.