Electrolux Group steps-up cost reductions and organizational simplifications

As communicated in connection to the Q2-2023 report, given the challenging macro environment, an evaluation of further structural simplification and complexity reductions has been initiated. Weak market demand with consumers mixing down to lower price-points has been accompanied by increasing price pressure in most markets globally, particularly impacting North America. This has been enabled by the resolution of post pandemic supply-chain constraints, significantly lower freight rates, a strong US dollar vs. Asian currencies and large cost inflation discrepancies between Europe and North America on one hand and in certain parts of Asia on the other, resulting in high promotional activity with increased pressure on margins.

To restore margins and return to profitable growth through accelerated execution of the strategy to deliver innovative and sustainable digital consumer experience solutions, Electrolux Group is increasing its focus to grow profitably in selected mid- and premium categories with its main brands, while driving even more targeted portfolio management. The strategy to drive high efficiency and productivity and the efforts to significantly reduce product and SG&A cost are intensified. The ongoing substantial cost reduction progress, while ahead of plan, is not sufficient to restore margins given the price pressure from input cost discrepancies. Further simplification, delayering and streamlining of the organization are required