Electrolux Plans 1,700 Layoffs, Plant Closure in Italy

MILAN - Electrolux plans to lay off 1,700 people in Italy, more than 40 percent of its workforce in the country, and close one of its plants there, Italian trade unions said on Monday.

The Swedish appliance maker has struggled with weak consumer demand and competition from lower‑priced Asian rivals, which has sent the stock down as much as 75 percent from its 2021 highs.

As a result, Electrolux has signaled more layoffs and has been restructuring, cutting costs and focusing more on premium categories to try to lift profitability amid fierce global home appliance trade competition.

Electrolux plans to close its kitchen hood‑making facility in Cerreto d'Esi, near Ancona, in central Italy, and reduce staff levels in all its plants, Italy's UILM, FIM and FIOM metalworkers' unions said in a joint statement after earlier meeting company officials.

Electrolux, which was not immediately available for comment, runs five plants in Italy, with a total of 4,500 employees.

Gianluca Ficco of UILM union, who attended the meeting in Venice, said in a separate statement that Electrolux had highlighted the critical situation in the European market, a surge in production costs and increasingly fierce competition from Chinese home appliance brands.

European household appliance manufacturers have faced mounting pressure from Chinese exporters such as Midea, Haier and TCL, which offer cost‑effective products with fast technological upgrades. High energy costs and strict regional environmental regulations have further squeezed profit margins for Western appliance firms.

Union representatives warned the restructuring could trigger wider job losses across Europe's home appliance sector if other Western brands follow Electrolux's cost‑cutting moves.