Electrolux has said that it wants to cut costs to help maintain profitability in Europe as the market cools off and slows.
Of course in reports the UK’s Brexit os also cited as a reason however, Electrolux’s UK market share isn’t massive so we don’t see why that would have any great bearing really. Maybe it does but, we can’t see it other than like all the rest Lux has been forced to hike up prices win the UK given the weak UK Pound.
Electrolux are looking for the cuts to generate around £138 million that we imagine will be seen as a way to try to stem the drop in share prices, given it slipped 9% in the last month (ouch!).
Electrolux is trying to increase market share and to be fair to them, they’ve come up with some nifty ideas but whether that is enough in the current market where everyone seems to be chasing the cheapest possible products remains to be seen.
A larger shorter term problem though may be that ELectrolux is looking to cut wages of employees at it’s washing machine plant in Porcia, Italy and three other Italian facilities as well. That may lead to a clash (again) with unions and local governments as we saw a few years ago.
