Electrolux

Electrolux announced a European reorganization that includes confirmed end of refrigerator production at its Jászberény, Hungary factory—expected to affect about 600 local employees—and a proposed closure of the Cerreto d’Esi, Italy plant that aimed to eliminate more than 1,700 positions. Combined, the two processes could potentially affect more than 2,300 workers, although the Italian plan has been suspended for 50 days while the company, government and unions negotiate alternatives. The company cited stagnant demand, price pressure and competitiveness challenges in Europe as drivers for the restructuring and expects a non-recurring restructuring charge of about 600 million Swedish crowns. Electrolux says it will continue to meet refrigeration demand through other factories and partners, and the final outcome depends on negotiations, possible transfers, voluntary programs and other social protection measures.

Electrolux presented a revised restructuring plan for its Italian operations that reduces the scale of job cuts and relies on voluntary departures and temporary layoff schemes over a three-year period to avoid compulsory redundancies. Union representatives said the group now plans to cut around 1,250 jobs in Italy (650 production workers and 600 office employees), down from an initial plan of up to 1,700 positions. The company is prepared to seek a buyer for its Cerreto d’Esi kitchen hood plant and continue production there until a possible sale. Unions welcomed the approach but are awaiting detailed plans on compensation and incentives; the Industry Ministry will hold further talks to discuss the revised plan.