Electrolux plans to cut 1,700 jobs in Italy and to close one of its manufacturing sites in the country, according to a joint statement from Italy's UILM, FIM and FIOM metalworkers' unions following a meeting with company representatives.
The announced reductions account for more than 40% of Electrolux's workforce in Italy. The Swedish appliance manufacturer currently operates five plants in the country with a combined headcount of about 4,500 employees.
The company intends to close its kitchen hood production facility in Cerreto d'Esi, near Ancona in central Italy, while also reducing staff levels across all of its Italian plants, the unions said. The meetings between union officials and the company took place earlier on Monday.
Gianluca Ficco of the UILM union, who attended the meeting in Venice, reported that Electrolux pointed to a strained situation in the European market, a sharp rise in production costs and intensified competition from manufacturers in Asia as factors behind its decision.
Electrolux has faced soft consumer demand and competition from lower-priced rivals, and its stock price has declined by as much as 75% from its 2021 highs. In response, the company has been implementing a restructuring program that includes cost-cutting measures and a strategic emphasis on premium product categories to try to restore profitability.
The unions said they are calling for an eight-hour strike across Electrolux's Italian plants and urged government intervention. Italy's industry ministry said it was monitoring developments and would continue dialogue with both the company and the trade unions to follow the situation.
The company was not immediately available for comment.
Context and immediate developments
- Planned layoffs total 1,700 workers, representing more than 40% of Electrolux's Italian workforce of approximately 4,500.
- The Cerreto d'Esi site, which manufactures kitchen hoods, is slated for closure.
- Unions have called an eight-hour strike and have asked the government to step in; the industry ministry is engaged in monitoring and dialogue.
Corporate response and market backdrop
Electrolux has been pursuing restructuring initiatives, including cost reductions and a reorientation toward higher-end product segments, as part of efforts to bolster profitability amid weak demand and increased competition from lower-cost international rivals.