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© Whirlpool Electronics Production | October 28, 2011

Whirlpool to cut 5'000 positions

In an effort to improve earnings, Whirlpool has announced today plans to reduce more than 5,000 positions - primarily within North America and Europe.
The company's cost and capacity reduction plans include a reduction of approximately 10 percent of the workforce in those regions (North America and Europe) and the reduction of approximately 1200 salaried positions.

Speaking about the plan Jeff M. Fettig, Corporation chairman and CEO said:
"Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions. The plans are the result of a comprehensive global review of our operations, products and manufacturing facilities."

Other actions planned

-Closure of the refrigeration manufacturing facility in Fort Smith, Ark. by mid-2012. Production from Fort Smith will be consolidated into current North American sites to leverage existing resources and capacity.
-Relocation of dishwasher production from Neunkirchen, Germany to Poland in January 2012.
-Overall capacity is expected to be reduced by approximately 6 million units based on today's announcement and other actions.

These actions are expected to result in $400 million in annual cost savings by the end of 2013. The combination of these plans with announced price increases are expected to accelerate margin growth beginning in 2012. Restructuring expenses totaling approximately $500 million will be incurred over the period beginning in the fourth quarter of 2011 through 2013. The company now anticipates recording restructuring expenses of approximately $160 million in 2011 compared with its previous estimate of $75 million to $100 million.

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