Electrolux announces global streamlining measures and Hungarian manufacturing investment

Following a strategic overview started earlier this year, Electrolux today decided to initiate a plan to improve efficiency throughout the Group. The company today also announced a plan to outsource parts of its current manufacturing in Hungary and invest in its Nyíregyháza refrigerator plant. The efficiency measures and redundancies related to the outsourcing will lead to restructuring charges in the third quarter 2019 of approximately SEK 1.6 billion. The net impact of non-recurring items in the third quarter is anticipated to be negative with approximately SEK 400 million; see separate press release for more details.

Press release – Electrolux on January 31 announced an intention to spin off its Professional Products business area as a separate company. The company also communicated a plan to sharpen the consumer organization and accelerate profitable growth by creating four regionally focused business areas and reorganizing key global functions. As the strategic overview related to these activities has progressed, Electrolux has now identified opportunities to improve efficiency in both the consumer and professional organizations. The resulting redundancies are anticipated to impact approximately 875 non-production positions globally, and relevant union consultations will take place. The activities will more than offset increased ongoing costs related to the separation of Professional Products and result in a more streamlined setup for the consumer business.