SINGAPORE: Electrolux, a Swedish manufacturer of household appliances, is closing its Rochester Road regional company in Singapore and firing staff.  ,
The business announced on Friday ( Feb 2 ) that its Middle East and Africa ( MEA ) and Asia-Pacific ( APAC ) commercial leadership teams would also move to Bangkok.
Australia and Thailand are becoming important centers for Electrolux Group in the region with a previously established professional set-up for APAC and MEA, according to Ms. Samar Refai, the company’s communications director for the two locations, in response to an CNA keyword.  ,
The proximity to our clients, consumers, manufacturing facilities, R&, D, and development centers is ensured by having the local capabilities and competencies within these hubs.
She made no comments regarding the number of laid-off workers in Singapore.  ,
No additional information would be given regarding the nature of social contracts with affected employees, according to Ms. Refai, who added that” those who are impacted are offered the highest level of support during the forthcoming transition time and are treated with utmost respect.”
The Braddell Singapore sales office wo n’t be impacted by the move.
The director continued,” The decision has absolutely no bearing on the administrative business and trade relations in any of the areas in APAC and MEA of Electrolux Group.”
” YET ANOTHER DIFFICULT Yr!”
As a result of rising inflation, rising interest rates, and political tensions, Electrolux reported in an income statement on Friday that its gross loss more than tripled in 2023.
As its losses increased to 5.2 billion kronor ( US$ 500 million ), the company’s CEO Jonas Samuelson stated that 2023 “proved to be another challenging year.”
The business issued a profit warning for the third quarter in the middle of January, ahead of the revenue report, citing high fees, intensified cost opposition, and low desire in North America.
A Bloomberg survey found that Electrolux reported a net loss of 4.1 billion kronor for the third quarter, which was higher than analysts ‘ predictions and more than twice as much as the 1.9 billion damage from the same time last year.
It is really disappointing, according to Samuelson, that the sizeable cost savings we have experienced in North America are not being visible on the bottom line but instead being consumed by the industry’s high level of promotional activity.
According to a Bloomberg study, Electrolux reported gross sales of 134.5 billion kronor for the year, which is close to matching researcher expectations from 2022.
During the COVID-19 crisis, Electrolux saw a growth as housebound consumers focused on refreshing their homes.
However, the business was therefore affected by supply chain disruptions and is currently finding it difficult to adjust to lower need.
It announced plans to eliminate about 3, 000 work in October of last year, which came after a similar statement the year before, primarily in North America.