STOCKHOLM (dpa-AFX) - Electrolux AB (0MDT.L) on Monday announced its decision to cut cost citing weak earnings in the third quarter as well as lower-than-expected product demand due to high inflation and lower consumer confidence.
The initiative, which the company plans to begin immediately, will focus on reducing variable costs, particularly removing cost inefficiencies in supply chain and production.
The company also named Ricardo Cons, current Head of Business Area Latin America, as Head of Business Area North America. Ricardo Cons succeeds Nolan Pike, who is taking up a new position. A new head of Electrolux Latin America is expected to be appointed shortly.
In North America, the company believes that the production transformation with two new facilities and several new product platforms, combined with the particularly challenging supply chain conditions, additional measures are required to return to profitability. Therefore, a turnaround program in the region is planned under the leadership of Ricardo Cons.
Electrolux expects the group cost reduction and the North American turnaround program to contribute to earnings in 2023.
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