Electrolux is laying off dozens of employees at its Charlotte headquarters and local distribution facility.
Electrolux is reported to not stating how many people lost their jobs the last two days, but employees say it is at least 100.
Some employees say it came with no warning, one said, “There was no warning at all. In fact, they ensured us that everything was fine a few weeks ago,” said an employee let go Friday who did not want to be identified.
A former worker who recently left says Electrolux couldn’t meet aggressive goals set a couple years ago, so long-time, higher-paid employees are paying the price.
“It’s disheartening to hear stories of friends who are long-tenured at the company that are now going within 10 to 15 years of retirement and the difficulty they will experience in a very competitive job market,” the former employee said.
Electrolux’s reasoning for the layoffs is it is focused on financial efficiency and future profitability.
The company moved its headquarters here in 2010.
In 2013, Electrolux announced an $85 million facility expansion bringing about 800 new jobs, with the city and county kicking in million in incentives.
Electrolux also recently bought GE’s appliance division for just over $3 billion.
“Companies thrive one day and have challenges the next,” said Charlotte Chamber President Bob Morgan. “I’m confident over the long term they are going to grow in Charlotte.”
Electrolux says the its expansion into a 375,000 square foot facility is not on hold.
Instead, they are evaluating how the space will be used, given the pending GE acquisition.
Employees losing their jobs are eligible for severance pay and job placement help.
Electrolux spokeswoman Eloise Hale says the company cut less than 1 percent of its North American workforce of 12,000.
The company is currently awaiting regulatory approval to close its $3.3 billion purchase of General Electric’s Louisville, Kentucky-based home appliance business.
Electrolux employs about 925 people in Charlotte. In 2013, Electrolux said it was planning to increase the number to 1,600 by 2017, but Hale says the company will evaluate those $85 million expansion plans after the GE purchase is completed.
Meanwhile GE Appliances division in Louisville, is in the middle of negotiating new labour agreements with unions. According to a fact sheet from the company, the company is seeking a national labor agreement to replace one that expires at the end of June.
GE has 16,500 employees represented by 11 unions in the US. In Louisville, unionised workers at Appliance Park are represented by the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America Local 761.
In Louisville, the company faces an unusual situation in that it is in the process of selling its GE Appliances division to Electrolux in a $3.3 billion deal that is pending regulatory approval.
Some weeks ago it was reported that the deal casts uncertainty on union expectations for the negotiations. After the deal is final, GE’s employees will become Electrolux employees, the story said, and there’s no certainty that Electrolux will honour a GE-negotiated contract.
There is good news (so far) for Electrolux’s 700 Memphis employees however.
Electrolux confirmed Memphis would not be losing any jobs as it cuts 120 jobs from its North American operations, which employs an estimated 12,000 people. The job cuts would represent less than 1% of its total US workforce.
Electrolux reported a 21% drop in earnings for the first quarter of 2015, which also saw the resignation of Jack Truong, CEO of North American operations.
Eloise Hale confirmed Memphis would not be affected by the job cuts.