Layoffs await at Electrolux following termination of GE deal

The company says that operations have continued to be negatively impacted by reduced volumes in several key markets, as well as unfavourable currency movements. Measures to restore profitability are now being taken, this includes staff reductions and downsizing of activities, mainly in the US, Sweden and China. Consultations have been initiated with the Swedish Unions. These actions are expected to reach full effect from end of 2016, with estimated annual cost savings of SEK 120 million (EUR 12.96 million). Costs related to the program are expected to amount to SEK 190 million (EUR 20.52 million). The cost reduction program follows the termination of Electrolux' planned acquisition of GE Appliances. Electrolux will have to – in accordance with the terms of the transaction agreement – pay a termination fee of USD 175 million to General Electric.