The Strategist

Electrolux announces cost cuts due to rising inflation and falling demand



09/13/2022 - 09:36



Inflation resulted in a drop in customer demand, and as a result, Swedish Electrolux has chosen to initiate a cost-cutting campaign, according to the company's press release.



Electrolux announces cost cuts due to rising inflation and falling demand
"Due to the impact of high inflation on purchases of consumer durables and low consumer confidence, it is predicted that market demand for major appliances in Europe and the United States decreased substantially more quickly in the third quarter than in the second quarter. The impact of the slowdown in consumer demand was made worse by high inventory levels at retailers," said the company.

It stated that the board had made the decision to start a cost-cutting program because it anticipated reduced market demand in the US and Europe in 2023.

The program's main goal will be to cut expenses overall, with a focus on our supply chain and manufacturing's inefficient expenditures in particular. Prioritization and efficiency techniques will be used in structural cost reductions, which will mostly take place in Europe and North America.

source: cnn.com




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