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Bloomberg
Electrolux AB will cut almost 1,700 jobs and take a charge of 1.6 billion Swedish kronor ($164 million) to reduce spending as the Swedish household-appliance maker battles increased raw material and tariff costs.
The redundancies will affect about 875 white-collar jobs, and about 800 staff at the company’s factory in Jaszbereny, Hungary, the Stockholm-based company said in a statement. The positions will be eliminated as Electrolux invests in automation and outsources production of vacuum cleaners from the plant.
The measures are intended to generate annual savings of about 500 million kronor from 2022. The shares rose 0.9 percent in Stockholm.
Electrolux now aims to save a total of 3.5 billion kronor through cost cuts and revamping manufacturing, including the shutdown of a cooking-product plant in Memphis, Tennessee.
The Swedish company has seen costs increase as steel prices rise and components imported from China come with extra import duties.