Electrolux Downsizes Small Appliances Unit, Cuts Jobs

STOCKHOLM—Swedish appliance maker Electrolux AB said Wednesday it will downsize and cut jobs at its Small Appliances business as lower volumes and unfavorable currency movements continue to weigh on the unit.

The cuts will be focused mainly in the U.S., Sweden and China as the company targets 120 million Swedish kronor ($14.2 million) of annual savings by the end of next year, it said. The program is expected to cost 190 million Swedish kronor.

"Once the program is completed, Small Appliances will have financial flexibility to continue to invest in profitable product categories," the company said in a statement.

Although no specific details on the number of job cuts were given, the company said it has already started consultations with Swedish unions.

The measures come after General Electric Co. earlier this week pulled the plug on the $3.3 billion sale of its appliances business to Electrolux. Terms of the proposed deal provided GE with a breakup fee should the sale not be completed and Electrolux confirmed that it will today pay the termination fee of $175 million to GE.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

December 09, 2015 03:45 ET (08:45 GMT)

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