Electrolux issues profit warning, cuts 3,000 jobs worldwide

STOCKHOLM: Electrolux, the world's leading electric appliance maker, said Monday it plans to cut 3,000 jobs worldwide and warned it would not meet its 2008 operating profit target due to declining demand.

"As a result of weakening demand for appliances in the two last weeks of November and in December, Electrolux will not reach its outlook for the full year of 2008," the company said in a statement.

"In light of the sharp market decline, Electrolux is reducing the number of employees by more than 3,000 in the fourth quarter of 2008 and in 2009," it said.

Electrolux said it was "no longer possible" to achieve an operating income in 2008 of 3.3 to 3.9 billion kronor (309 to 365 million euros, 415 to 491 million dollars), as previously expected.