Since the pandemic, the market and economy of many countries are falling apart with no or little pace of growth. The world was just returning to normal and it had to face another tremor, that is, World War between Russia and Ukraine.
Each and every sector of the economy has been affected by a series of tremors, be it automobiles, social media sites like Twitter, and even appliance companies like Electrolux and Whirlpool.
Yes, you read it right. Appliance companies like Electrolux have recently been seen going into losses. To discontinue further losses, it has taken several measures which ultimately affected its employees and wagers.
As demand is proportional to sales, Electrolux suffered a sink in demand which caused the company to reduce 8% of its total workforce of 50,000 employees. The shares of the company fell at first as low as 5.9% but sources said it did recover from the loss later on.
Companies release their earnings on a quarterly basis. Electrolux realised that it was running in losses. This news caused the company to cut off almost 8%, that is, 3500 to 4000 people in numbers from its total workforce of 50,000 employees. Electrolux reported a loss of 385 million Kronor in the third quarter on Friday. Kronor is the currency of Sweden
Most of the targeted savings of the company will be discharged in the North American division. The estimated savings is around seven billion kronor. Chief executive officer, Jonas Samuelson, expressed his dissatisfaction regarding the performance of the company in North America.
About Electrolux company:
It is a Swedish manufacturer of home appliances and a multinational company, founded by Axel Wenner-Gren. It is owned by Investor AB. It is the second largest appliance maker after Whirlpool in the world. It is famous for appliances like cooker ovens, microwave ovens, refrigerators, dishwashers, etc.
Electrolux and other appliance makers like Whirlpool which is the largest appliance maker in the world is going through worse economic conditions. Because of this condition, Electrolux has started job cuts of around 3500 to 4000 employees for cost reduction purposes, announced in the 3rd quarter earnings.
Several factors surround the growth of the market like peaceful coexistence, cooperation, and compassion. But if we see globally, none of the factors are in the perfect place to raise the market like before. Wars, pandemics, crises, and emergencies are the biggest contributors to the failure of different markets in different areas.