16 Dec 2008

Electrolux cuts 3,000 jobs

9:10 am on 16 December 2008

Electrolux, the world's leading electric appliance maker, plans to cut 3,000 jobs worldwide because of declining demand.

The company, which had 56,900 employees at the end of 2007, also warned it would not meet its 2008 operating profit target.

Electrolux said demand for appliances in Europe and North America "declined considerably" in the two last weeks of November.

The group has for more than a year been in the process of restructuring its business to reduce production costs, moving factories to countries where labour is cheaper.

It also raised prices in order to compensate for rising raw material prices.