Electrolux halves planned Italy redundancies under revised industrial plan

Electrolux Reduces Planned Job Cuts in Italy, Pledges €100 Million Investment

Electrolux’s Revised Restructuring Plan and Investment in Italy

Overview of the Agreement

ROME, Nov 4 (Reuters) - Appliance maker Electrolux has agreed with the Italian government and unions to nearly halve planned job cuts in the country and invest more than €100 million, the unions and the industry minister said.

Details of Job Cuts and Workforce Management

• The Swedish group's revised plan now envisages a maximum of 918 redundancies among permanent staff over the next three years, from 1,719 initially unveiled in May
• The departures will be managed on a voluntary basis with incentives, and will now exclude compulsory layoffs

Production Targets and Site Retention

• The new strategy targets annual production of about 3.2 million units by the end of the plan in 2029, down from 3.6 million now, according to the Uilm trade union
• The deal will keep production at all of Electrolux's Italian sites, including its kitchen hood-making facility in Cerreto d'Esi, near the city of Ancona, which the group initially planned to close, retaining all 149 staff there as the group seeks a new investor for the plant

Negotiation Process and Stakeholder Involvement

• The deal struck after 30 hours of talks in Rome between the company, unions and government officials, will secure "long-term production prospects in Italy", the industry ministry said
• Uilm said workers would vote on the deal in the coming days

Background and Industry Context

• Electrolux announced the restructuring plan this year as it moves to boost competitiveness amid weak demand and pressure from lower-priced rivals
• Electrolux was not immediately available for comment

Reporting and Editing Credits

(Reporting by Giulia Segreti in Rome; Editing by Clarence Fernandez)