Electrolux, the world's leading electric appliance maker, plans to cut 3,000 jobs worldwide. The news came as it warned that it would not meet its 2008 profit target due to declining demand.
The company had 56,900 employees at the end of 2007. It employs 45 people in Ireland. Electrolux said demand for appliances in Europe and North America 'declined considerably' in the two last weeks of November.
The group has for more than a year been in the process of restructuring its business to reduce production costs, moving factories to countries where labour is cheaper. It also raised prices in order to compensate for rising raw material prices.
The company reported a net loss in the first quarter of the year before bouncing back into a slim profit in the second quarter. In the third quarter, the company posted an 11.2% rise in net profits as sales remained stable. But its operating profit fell by 72% during the quarter, a drop attributed to a costly product launch in North America.
