Electrolux to Cut More Than 5,000 Jobs Dec 18, 2002

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Appliance maker AB Electrolux said it will cut more than 5,000 jobs in the next 2 years and close an air-conditioner plant in New Jersey, U.S. as it seeks to lower costs and improve productivity. The company said it would also consolidate its operations in China and India. "We must make every effort to improve operations that are underperforming or not creating sufficient value," said Electrolux president and CEO Hans Straaberg. "This is fundamental for enabling increased activities in product development and marketing to achieve growth, and for strengthening our leading positions within our highly competitive industries." The company plans to eliminate 5,091 jobs through the restructuring and close its air conditioner manufacturing facility in Edison, N.J. It also plans job cuts in India and China and will sell a component plant in Australia. The company's board of directors approved the restructuring. The company will take a charge of nearly 1.37 billion kronor (U.S. $153 million) in the fourth quarter to cover the restructuring costs. (Associated Press)

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