SINGAPORE: Swedish residence home equipment maker Electrolux is closing its Singapore regional workplace at Rochester Street and shedding workers.
The corporate mentioned on Friday (Feb 2) that its Asia-Pacific (APAC) and Center East and Africa (MEA) industrial management staff can even relocate to Bangkok.
“With a newly established industrial set-up for APAC and MEA, Australia and Thailand have gotten key hubs for Electrolux Group within the area,” mentioned Ms Samar Refai, Electrolux’s communications director for the 2 areas in response to a CNA question.
“Having the regional capabilities and competencies inside these hubs ensures proximity to our clients, shoppers, manufacturing websites, R&D and innovation centres.”
She didn’t touch upon what number of workers in Singapore could be laid off.
“Those that are impacted are provided the utmost degree of assist in the course of the upcoming transition interval and are handled with utmost respect,” Ms Refai mentioned, including that no additional particulars could be offered on the character of collective agreements with affected workers.
The transfer won’t have an effect on the Singapore gross sales workplace in Braddell.
“The choice has no influence, in anyway, on the operational enterprise and commerce relations in any of Electrolux Group’s markets in APAC and MEA,” the spokesperson added.
“ANOTHER CHALLENGING YEAR”
In an earnings report on Friday, Electrolux mentioned that its internet loss greater than tripled in 2023 as hovering inflation, greater rates of interest and geopolitical tensions weighed on shoppers.
The corporate’s chief govt Jonas Samuelson mentioned that 2023 “proved to be one other difficult 12 months” as its losses widened to five.2 billion kronor (US$500 million).
In mid-January, the corporate posted a revenue warning for the fourth quarter forward of the earnings report, citing excessive prices, intensified worth competitors and weak demand in North America.
For the fourth quarter, Electrolux reported a internet lack of 4.1 billion kronor, greater than double the lack of 1.9 billion for a similar interval a 12 months earlier and worse than analyst expectations of a internet lack of 2.3 billion kronor, in accordance with a Bloomberg survey.
“It’s really disappointing that the numerous value financial savings we now have realised in North America are usually not displaying on the underside line however relatively consumed by the trade’s excessive diploma of promotional exercise,” Samuelson mentioned.
For the 12 months, Electrolux reported 134.5 billion kronor in internet gross sales, almost matching the 134.9 billion kronor it registered in 2022, and consistent with analyst expectations, in accordance with a Bloomberg survey.
Electrolux skilled a increase in the course of the COVID-19 pandemic as housebound shoppers turned their consideration to refreshing their houses.
However the firm was then hit with supply-chain disruptions and is now struggling to adapt to weaker demand.
In October final 12 months, it introduced plans to chop about 3,000 jobs, which adopted an announcement the 12 months earlier than that it will minimize 4,000 jobs, primarily in North America.
