Electrolux cuts 1,719 jobs across Italy amid rising costs
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Electrolux plans to cut 1,719 jobs in Italy, closing the Cerreto d'Esi plant and reducing staff at other facilities due to unsustainable costs of raw materials, energy, and labor.
KI-generierte Zusammenfassung
Warum es wichtig ist
Electrolux is implementing significant job cuts and plant closures in Italy as part of a broader restructuring plan. The company cites unsustainable increases in the costs of raw materials like steel, energy, and labor as the primary drivers for these decisions.
The total cuts in Electrolux's plan are 1,719. This is what emerged from the slides presented by the company at the meeting at the Mimit.
In addition to the closure of Cerreto d'Esi, there are cuts for all plants. Porcia goes from 571 employees to 309 (262 fewer), Solaro from 615 to 398 (-217), Forlì from 683 to 345 (-338), Susegana from 728 to 418 (-310).
Raw materials such as steel, energy, and labor costs are reaching "unsustainable" levels, according to the slides, which also highlight that 12 plants of other appliance companies in Europe have ceased operations since 2024 or are about to do so: "despite our continuous commitment - it is emphasized - the context is no longer sustainable in its current structure."
Steel in Europe is more expensive - according to the slides - by about 31% compared to China and 27% compared to Thailand. The hourly labor cost in Western Europe is 37 euros, compared to 12 in Eastern Europe, 9 in Turkey, and 5 in Asia, thus up to almost 8 times higher than Asian competitors.
The energy cost is 204 euros per megawatt-hour in Western Europe, compared to 114 in Asia and 77 in Turkey, thus almost double compared to Asia and more than two and a half times compared to Turkey.
Worauf zu achten ist
KI-Ausblick — Möglichkeiten, keine Fakten
Further job cuts or plant closures in other European countries if cost pressures persist.
Wahrscheinlich · Mittelfristig
Government intervention or support packages for affected workers and regions.
Möglich · Kurzfristig
Offene Fragen
- What is the total number of jobs being cut across all of Electrolux's European operations?
- What specific measures, if any, are being considered by the Italian government or the EU to support the affected workers or the domestic manufacturing sector?
- What is Electrolux's long-term strategy to address the cost disparities with Asian competitors?
- Are there any plans for alternative uses or sales of the closed facilities?
