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Electrolux to Lay Off 130 at Freezer Plant
May 10, 2005
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The Electrolux freezer factory in St. Cloud, MN, U.S. will pause production May 9-13 and lay off about 130 workers May 23.

It is the fifth pause in production and the second major layoff in less than a year.

Electrolux spokesman Tony Evans attributed both events to a "softening of demand in the freezer market."

The May 23 layoffs affect the evening shift on a line making large and small upright home freezers. Workers could be called back when demand improves or other jobs open, Mr. Evans said. Unlike a December layoff of 229 workers, the May 23 downsizing is not related to outsourcing.

Stockholm-based Electrolux AB saw 2004 net income fall 34 percent. To stay competitive, it plans to move about 13 of its 43 U.S. and European appliance plants to lower-cost areas such as Eastern Europe, Asia, and Mexico.

The plant will have 1,350 employees after the layoff, down almost 9 percent from January. The St. Cloud plant also halted production April 11-15. (St. Cloud Times)

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