Skip to comments.Whirlpool to Cut 5,000 Jobs in N. America, Europe
Posted on 10/28/2011 12:03:37 PM PDT by Patton@Bastogne
Citing soft demand in the weakening global economy, Whirlpool Corp. on Oct. 28 announced it would slash more than 5,000 jobs in North America and Europe and reduce capacity.
The company said the action would reduce its workforce in the regions by 1%, and included the elimination of 1,200 salaried jobs. Whirlpool, among the biggest appliance makers with a global portfolio of brands including Maytag, KitchenAid, Brastemp and Consul, did not break down the number of job cuts by location.
As part of the belt-tightening, Whirlpool said it would close a refrigeration manufacturing plant in Fort Smith, Arkansas, by the middle of next year, and relocate dishwasher production from Neunkirchen, Germany, to Poland in January.
The company said it was taking steps to reduce overall capacity production by about six million units as it reported third-quarter earnings that reflected lower operating profit.
"Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs," said Jeff Fettig, Whirlpool CEO.
The Benton Harbor, Mich.-based company reported operating profit fell 42% from the 2010 third quarter, to $136 million.
Net profit more than doubled in the July-September period, to $177 million, while sales climbed 2% to $4.6 billion.
Whirlpool estimated its cuts and other moves would result in $400 million in annual cost savings by the end of 2013.
"We are taking necessary actions to address a much more challenging global economic environment," said Fettig.
"We believe our cost and capacity reduction initiatives, recently announced cost-based price increases, and innovative product launches will enable us to expand operating margins and deliver long-term value to shareholders."
Copyright Agence France-Presse, 2011
Hopey Changey! Hey, maybe they can hire that Maytag guy!
People are rehabbing their old appliances and running them as long as they can.
-the new “green” Energy Star appliances suck!
I hope all my Whirlpool appliances don’t become orphans.
Obamaconomy is no economy
Bought my house in 1989. Included washing machine is a Whirlpool “Design 2000”. Imagine how cool that must have sounded back then. I like it.
I bet this plant's job will go to Mexico or China.
A Whirlpool hotwater heater broke in my house, destroyed 4,200 sf of hardwoods.
It was 10 year heater and broke 1 year and 4 days after install. On inspection, it appears they missed 18 inches of weld.
The heater was made in the USA, which is why I bought it.
They offerred a new crappy hot water heater in settlement.
I don’t care what happens to them.
Great. Let them go. And strip them of their citizenship if they try to come back when times are good (and they WILL get better). Tired of hearing weeping tears over these greedy, anti-american companies who flock to communist countries. If they love the ChiComs so much, let them become one of their fold.
We bought an new model home in 2004. The kitchen was outfitted completely with Whirlpool stainless steel appliances. By 2009, the motor failed in the side by side refrigerator. We replaced it with a Frigidaire. No more Whirlpool.
Change! Change we can BELIEVE in!
I didn’t know there were any appliance makers left who manufactured in the U.S. except the very high-end ones.
One lesson I learned the hard way, like you did, is never put a water heater where it can damage interior flooring. With almost all water heaters, it’s not whether or not they will leak but when.
Whirlpool owns Maytag.
Ask anybody who bought a Maytag Neptune washer in the last 5 years what they think of Whirlpool.
These folks are primarily tanking because of BAD PRODUCT.
I hope to keep my 14 y/o Maytag “classic” washer til I die.
Both my (adult) daughters have dumped their fancy front loaders they bought when they got married in favor of the old reliable.
Concur with that. I’m of the “replace at 10 years” attitude, and my last one only made it 6 or 7, despite having a 10 or 12 year warranty (can’t remember which).
And I really need to put in a leak detector / alarm down there. Even though a leak can’t hurt much, it can still be a PITA.
‘-the new green Energy Star appliances suck!”
BIG TIME!!! Garbage!
Down the drain ping. Thanks Patton@Bastogne.
Reported this morning to be 400 job eliminations in Michigan.
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