Global reorganization that the Electrolux group announced in recent days provides for 4 thousand redundancies, a situation that is affected by the context characterized by both the growth of inflation and the drop in consumption that also affects household appliances. The Italian management of the company met with the trade unions to decline the impact in our country where, according to a note from Fim, Fiom and Uilm, the redundancies will be 300. Half of the workers, half of the white-collar staff and managers.
However, the reduction in costs will go hand in hand with investments and the reorganization of production which will concern in particular the Solaro site, where an innovative dishwasher platform should be built. Precisely this appliance is considered increasingly strategic, since “not yet relegated to a market of mere replacement and therefore potentially growing,” the company explained to the trade unions. The intention is therefore to produce a new product in the Italian factory, which will focus on low consumption and high performance and which will require a very important investment. In fact, the site needs an intense reorganization in the now obsolete technology department, in the packaging plant and in the assembly lines, with an amount of investments in the period 2023-2026 of 102 million euros. The new production platform should allow us to reach from the current 780 thousand pieces to 960 thousand in 2024, to 1,140 thousand in 2025 and to 1,329 in 2026.However, Electrolux’s investment plan is linked to reaching an agreement with the trade unions both on redundancies and on increasing productivity. In particular, the company asks to switch from the current production revenue, equal to 90 pieces per hour, in two years to a revenue of 118 pieces per hour, for a daily production of 5,970 pieces. The major pieces would be linked to an ergonomic improvement of the workstations and to the strengthening of the staff, which however has not yet been quantified. For the trade unions it is «an extremely ambitious project, not predictable in its outcome, which greatly affects the organization of work. A comparison is now starting that will have to try to combine the sustainability needs of investments with the indispensable ones of health and safety in the workplace, as well as with the need to stabilize precarious workers and to be able to carry out a generational change
Tag Archives: Electrolux
Electrolux layoffs
Electrolux, with a newly-expanded plant in Anderson County, announced thousands of layoffs that will affect workers across the globe.
Last week the company said it is implementing a cost reduction and restructuring program to increase earnings.
Electrolux says between 3,500 and 4,000 positions companywide will be impacted by the program in the last quarter of 2022.
“Regarding business area North America, I am obviously very disappointed with our performance,” said CEO Jonas Samuelson. “The production transformation with the two new facilities Anderson and Springfield including several new product platforms, in combination with the particularly challenging supply chain conditions, require additional measures to return to stability and profitability.”
Samuelson said stabilizing and improving operational planning in Anderson is part of the North American turnaround plan.
Electrolux job losses
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.
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.
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