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Electrolux to miss '08 target, slash more jobs

Electrolux, the world's second-biggest home appliances maker, warned its 2008 results would fall short of expectations and said it would cut more than 3,000 jobs globally amid an abrupt downturn in business.

Electrolux said in a statement that demand for appliances in Europe and North America had declined considerably in the two last weeks of November and so far in December.

It said that, in the 11 months to November, comparable operating income was around 2.7 billion Swedish crowns ($336.5 million).

“As a consequence of these negative developments ... it is no longer possible to achieve the outlook of an operating income in 2008 of 3.3 billion to 3.9 billion crowns,” the firm said.

Electrolux said it would intensify cost savings introduced through 2008.

It said the new measures to reduce staff would cost around 1.2 billion crowns, which would be booked in the fourth quarter.

It said savings from the program were expected to amount to around 1.1 billion crowns on a yearly basis, with full effect as of 2010. (Reuters)