Swedish home appliances maker Electrolux on Friday announced that it would cut up to 4,000 jobs as part of a restructuring programme, as the group reported heavy third quarter losses. The majority of the targeted cost savings will be realised in business area North America”, AFP reported the company as saying. It added that “3,500-4,000 positions will be affected by the programme.”
The company reported heavy losses, especially in North America, owing to slowed demand. As per the estimates, inflation and high interest rates are expected to lead to further declines.
“Market demand in both Europe and North America for the full-year of 2023 is expected to further deteriorate, i.e. be negative year-over-year,” Chief Executive Jonas Samuelson said in a statement.
Tag Archives: Electrolux
Electrolux concluded the Open Innovation Program 2022
After a 12-month process, Electrolux concluded the open innovation Booster Program which saw it collaborate with multiple partners to develop four cutting-edge business solutions in response to real business challenges. The Booster Program
The open innovation Booster Program was launched in 2018 to seek cutting-edge solutions from external partners such as start-ups, small and medium-sized enterprises and university spin-offs. This program offers Electrolux the opportunity to connect with some of the best thinkers on the market and partners the opportunity to work alongside a global company and have access to deep engineering expertise, R&D resources and network of Electrolux production
This year’s program partners, selected through a pitch process by the Electrolux Open Innovation team in May 2021, presented their final solutions at the digital Demo Day last Friday 23 September. Two have been developed to the minimum viable product (MVP) stage and two are now ready-to-use technologies.
“This is the power of collaboration for innovation,” says David Cronström, head of Strategy and Transformation. “We benefit from the knowledge and speed of small businesses, while providing them with a huge platform to scale innovations.”
With LED Tailor; Electrolux has developed ways to introduce blue LED light sanitation into our products, to preserve hygiene without using chemicals
With Cerebrumedge ; Electrolux has developed a digital ergonomic assessment system aimed at factory workers, using an AI-based mobile app with Enervibe ; Electrolux will be able to collect energy from the vibrations of the racks of our washer dryers. The solution proposed by Drishti ; allows to automate qualitative analysis in production and improve our operations using advanced AI.
The next step is to evaluate the outcome of the project together with our sponsoring teams,” continues Cronström. “We look forward to seeing the potential evolution of these solutions”
Electrolux Students design for single, compact living.
the fifth year running, Electrolux has collaborated with students from the Umeå Institute of Design (UID) to develop product ideas for the home of the future.
With more people living alone today than at any point in recorded history,* the majority in small urban apartments, demand for goods such as small appliances, flatpack furniture and foldable items is rising. That’s why the students this year were challenged to develop progressive premium product ideas for single people living in small spaces. The 14 students from the Master’s program in Advanced Product Design created concepts for so-called singletons living a micro-home lifestyle in four major cities – Hong Kong, Munich, Mumbai and New York.
“These students challenge conventional assumptions,” says Thomas Johansson, Design Director at Electrolux. “They envision the future and create concepts that harness the essence of our brand in a captivating way. It’s also a fantastic opportunity for Electrolux to reach the best emerging talent.”
The product ideas:HumiTex: a slim dehumidifier that hangs in a closet to ensure optimal conditions for clothing, with premium materials and connectivity to signal when it needs to be emptied. Designed for space-conscious singletons in humid Hong Kong. By Ellis Walker, Jinying Cheng, Mattias Nordin and Thilo Fiebig.
Adapted: a premium hub that uses the kitchen’s vertical space to organize small kitchen appliances either as a piece of furniture or wall-mounted. The modules are connected in an app. Designed for busy singletons in Munich looking to reduce visual and mental clutter. By Joel Sjödin, Corinna Diestel, and Silvester Kössler
Jodana: an ecosystem of cooktops that adapt to the user’s circumstances. Can be stored vertically and combined with others in a modular system when cooking for more than one. Connectivity enables couples to cook together while apart. Designed for the singleton in bustling Mumbai. By Luisa Ebeling, Indalecio Gaytan, Niklas Muhs, and Yash Saboo.
Sensea: offers a ritual-like and sensory drinking experience. AI-based ,the device becomes a nudging companion, using physical data readout to gauge needs, habits and moods to prepare suitable morning, midday and evening herbal blends. Designed for singletons in New York City who seek calm, comfort, and wellbeing. By Gerardo Soler, Nina Långström, and Niklas Andreasen.
Electrolux Agrees to Sell Idle Factory in Memphis
Electrolux, Europe’s biggest appliances maker, has agreed to sell its idle factory in Memphis in the United States for $82.5 million, it said in a statement.
The Swedish group said late on Wednesday it aimed to finalise the deal with an undisclosed buyer, and book a gain of around 740 million crowns ($65.3 million) from it, in the fourth quarter.
Electrolux quick select Dishwashers
The Electrolux QuickSelect dishwasher user interface makes it easy for consumers to make more sustainable choices, by automatically guiding them to the most efficient program in terms of energy and water consumption. A touch slider with easily understood icons provides instant feedback on the selection, gently encouraging consumers to optimise their use of energy and water. With QuickSelect there is no guesswork, we simply make it intuitive for consumers to select the most suitable dishwasher cycle programs, that will save money and reduce their environmental footprint.
Electrolux signs UN Women’s Empowerment Principles
Electrolux today became a signatory of the United Nations Women’s Empowerment Principles (WEPs) as part of its long-term commitment to diversity and inclusion in the workplace.
Established by the UN Global Compact and UN Women, WEPs are a set of principles offering guidance to business on how to promote gender equality and women’s empowerment in the workplace, marketplace and community. WEPs are a primary vehicle for corporate delivery on gender equality dimensions of the 2030 agenda and the UN Sustainable Development Goals.
“At Electrolux, we recognize the unique value that every individual brings to the organization. Diversity and inclusion make us stronger, more innovative and a better employer. I’m proud that Electrolux is now a global signatory of the UN’s Women Empowerment Principles to empower women in the workplace through equal opportunities and fair treatment,” says Jonas Samuelson, CEO at Electrolux. “Electrolux has been a long-term signatory of the UN Global Compact and is committed to its principle of non-discrimination in the workplace.”
As part of its diversity and inclusion ambition around the world, Electrolux has also joined Workplace Pride, which is dedicated to improving the lives of LGBT+ people in workplaces worldwide.
Jonas Samuelson’s WEPs membership statement in full
“At Electrolux, we recognize the unique value that every individual brings to the organization. Diversity and inclusion make us stronger, more innovative and a better employer.
“I’m proud that Electrolux is now a global signatory of the UN’s Women Empowerment Principles to empower women in the workplace through equal opportunities and fair treatment. I’m also proud to initiate a long-term partnership with Workplace Pride to improve the lives of LGBT+ colleagues in the workplace. Electrolux has been a long-term signatory of the UN Global Compact, where we are committed to its principle of non-discrimination in the workplace. We look forward to continuously embracing and applying the knowledge, leadership and empowerment these long-term partnerships bring to the lives of our current and future employees at work.
“Working with diversity and inclusion is not only the right thing to do; it’s key to innovate and win in an ever-changing world.
“At Electrolux, we want to have an inclusive culture where diversity is celebrated and encouraged through respect and equal treatment as we live our purpose to shape living for the better.”
Electrolux long-term support of the UN Sustainable Development Goals
Electrolux also supports the UN Paris Agreement through Science-Based Targets and the UN ‘Business Ambition for 1.5°C’ by signing a global business pledge to limit global temperature rise to 1.5°C.
Electrolux Australia export
Built uniquely for the North American market under the Frigidaire brand, the first batch of Australian-produced ovens were sent on their journey overseen by local politicians including South Australian Premier, Peter Malinauskus and local employees at the Electrolux Adelaide factory Dudley Park, which employs about 400 employees and has its own local R&D group, has a manufacturing history dating back to 1939 and is the last whitegoods manufacturer in Australia.With a production target of more than 360,000 ovens this year with a goal of producing over 400,000 units by 2025 and 500,000 by 2030, the additional volume brings positive employment prospects. “The additional volume as we hit 400,000 and 500,000 will require us to bring on more staff.”
Electrolux has warned of a steep drop in demand for its home appliances
Sweden’s Electrolux on Monday announced plans to cut costs and warned its profit would drop as high inflation and low consumer confidence squeezed demand for its home appliances, while large investments in North America had yet to pay off.
Demand for appliances in Europe and the United States decreased at a significantly accelerated pace in the third quarter, with high retailer inventories and supply chain imbalances increasing costs and inefficiencies, Electrolux said.
Third quarter earnings for the group are expected to decline significantly compared to the second quarter 2022 also excluding the one-time cost to exit the Russia market,” the group said in a statement.
Electrolux has decided to exit Russia
Russia’s invasion of Ukraine and the following sanctions have made it impossible for Electrolux to continue its business in the country. The decision to divest the Russian business to local management is intended to enable a responsible and controlled exit. The divested company will continue to service appliances previously sold by Electrolux in Russia. Electrolux has no production in Russia and will not supply any appliances to the divested company.
The final operating income and cash flow effects will be determined by the balance sheet and exchange rate on the transaction day.
In 2021 Electrolux sales in Russia accounted for 4% of Business Area Europe sales and for 1.6% of Group sales.
Electrolux: investments in Italy are “under review”
Electrolux announced it to the unions: The plan of at least 70 million euros planned for the Italian plants, in particular that of Solaro (dishwasher) “is under review”. The plan was announced in July by head of HT Ruben Campagner and included 600 new jobs The Swedish multinational, which in Italy has about 5,000 employees between Porcia (washing), Susegana (cooling), Forlì (ovens and hobs), Solaro (dishwashers) and Cerreto d’Esi (hoods), should have met the trade unions at the summit of national coordination on 31 August to discuss the operating methods of the announced investment in Solaro for the new dishwasher facility.
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