Swedish home-appliance maker Electrolux said today it would reduce costs by closing European plants and shedding 2,800 jobs.
The group said in a statement the measures would result in a provision of about 1.5 billion Swedish crowns ($143.6 million) in the fourth quarter of 2001.
An Electrolux spokesman declined to comment on which plants were to be closed or relocated but said these would be identified by the group later in the day.
Measures considered include closure of two plants in Europe and one in Asia, relocation of one European plant and reduction of manufacturing personnel in Latin America, the group said.
In addition, continued rationalisation of sales and administration in Europe and North America as well as a number of other markets will be implemented.
The international brand centres in Europe would be consolidated to the head office of Electrolux Home Products in Brussels.
Shares in Electrolux tumbled 12 per cent on September 21st when the group said operating profit in the second half of 2001 would be 19-25 per cent below the year-ago period.
Analysts said the latest measures were widely expected. The size of the write-downs might be seen by some brokerages as a positive factor on the share price.