Electrolux AB said it will cut 750 jobs in Italy, or about 9.4% of its work force in that country, and stop all production at its plant in Scandicci, southwest of Florence.
The company said it will concentrate its production of refrigerators in Italy at its factory in Susegana in the northeastern part of the country. It will invest to increase efficiency and productivity at Susegana.
Around 450 jobs at the Scandicci plant and about 300 in Susegana will be eliminated.
The company said production capacity for refrigerators has grown rapidly in recent years, with an emphasis on Eastern Europe and parts of Asia.
"This development, in combination with increased global competition, has led to strong price pressure and subsequently a decline in margins," the company said in a statement.
The changes are expected to be completed in the second half of 2009.
The company said the restructuring will cost around 600 million kronor (approx. US$100 million), of which 540 million kronor will be taken as a charge against operating income in the second quarter of 2008.