A cut announced by Electrolux of 3.000 jobs, One charge up to 2,5 billion SEK in the fourth quarter, third-quarter revenue rose to SEK 23 million compared to last year's loss of SEK 605 million, and a earnings per share of 0,46 crowns, compared to the loss of 2,23 crowns a year ago.
Jobs: all Electrolux cuts
Turnover lost almost 8 percent (-7,9%) but net profit rose to 123 million crowns (10,4 million euros, not a little). Heavy numbers for employees but as often happens with an improvement in the accounts for cuts to staff and expenses already carried out.
Since the human and social factor still maintains great relevance, a quick summary of the cuts made and to be made explains well the strong downsizing of the multinational: 3.500-4 thousand redundancies announced and carried out globally in 2022; 400 in Hungary, 300 in Italy in 2022, e 3 thousand announced Thursday. Which will be even more.
Electrolux's third quarter is actually affected - more severely than the budgets of other white goods companies - by demand crisis. A European white market that continuously drops by 15-20 percent for nine months, a dramatically negative forecast for the next few months too - and a very predictable fall in employment - will cost Italy, given the absolute inactivity of the government and the Ministry of Business and Made in Italy, thousands and thousands of jobs.
Negotiations with the Chinese have been open for some time
But above all they will agree with those who had already written that Electrolux, despite all the denials, had already had it for some time negotiations open with Midea and then also with Haier. What now they would have in front of them - it is now a general opinion also in Brussels - not a route but actually a motorway. This explains it stand by of the two giants with the sudden stop to negotiations: were they perhaps waiting for the crisis to reach an unsustainable threshold as happened?
The most important Electrolux factories are located in Italy and Poland and they will be the ones to receive the hardest blows which then mean negative chain reactions on the supplier chain. Other than 3 thousand jobs in Europe, the European loss could be worsened by further unemployment and loss of experience and skills. A cold winter looms with poverty and very difficult social and trade union policies.
At the origin, in reality, also the dramatic world crisis resulting from wars and guerrillas which have been draining wealth and well-being for two years now, transferring them to war manufacturing.
La war in Ukraine in fact, it affected Electrolux much more than other companies, in abandoning the rich markets of Russia and Russian-speaking countries as well as seeing sales in Eastern Europe reduced (while the USA suffered no damage). And even the gigantic global recovery in consumption - blocked due to the very long lockdown - was immediately stopped by the enormous political tensions in Ukraine, the Middle East and Africa. A formidable investigation proves this Bloomberg which documented how world finance, strongly committed to supporting the armaments industries, simply increased tenfold the monstrous profits of what has become the world's leading manufacturer for two years: the American arms industry. An investigation impressive in terms of documentation and evidence incredibly passed over in silence.
Which factories are at risk?
All but with greater concern for a category of household appliances that make up at least 40 percent of the total family expenses in the domestic technology sector: washing, with also a sector that was promisingly increasing, drying. And therefore I am at risk the sites of Porcia first and then the rest, always in the North-East, in Romagna and Lombardy.
In 2017, to complete the Electrolux offering in cooking which has seen three years of strong increases throughout the world, it was acquired Best from the Marche region – owned by a North American multinational – into which the Swedish company has inserted resources and innovations. And it seems that there are no plans for this factory reductions in staff and activities.
But it must be underlined that the entire document relating to the performance of the third quarter leaves plenty of uncertainty in order to have the green light for further cuts. A very heavy ending, we repeat, for a multinational that has invested like no othern eco sustainability, circular economy and energy efficiency. But which, in liquidating very strong national brands with majority shares of their respective markets and in cutting off the best supply chains of suppliers - the Italian ones - has weakened the image of the central and sole brand, Electrolux (and in the background of AEG). Because it is not true that by concentrating resources, marketing and innovation on a single brand it is possible to make it stronger. Just ask those at the top of Whirlpool who have followed the same path.
