Electrolux, the Swedish home appliance manufacturer, plans to reduce its workforce in Italy by approximately 1,700 employees, representing more than 40 percent of its staff in the country, according to Italian trade unions. The company also intends to close its kitchen hood production plant in Cerreto d’Esi, near Ancona in central Italy, as part of its broader restructuring strategy.

The decision comes amid ongoing challenges faced by Electrolux, including weak consumer demand, rising production costs, and intensified competition from lower-priced manufacturers, particularly those based in Asia. These pressures have contributed to a significant decline in Electrolux's stock value, which has dropped by as much as 75 percent from its peak levels in 2021.

Italy’s UILM, FIM, and FIOM metalworkers’ unions issued a joint statement confirming the layoffs and plant closure following meetings with Electrolux representatives. The company operates five manufacturing facilities across Italy, employing a total of around 4,500 workers.

Gianluca Ficco, a representative of the UILM union who participated in discussions with the company in Venice, emphasized the difficult market conditions in Europe as a central factor behind Electrolux’s restructuring plans. He cited the escalation in production costs and growing competition from Asian manufacturers as key challenges the company is facing.

Electrolux is pursuing a strategy focused on cost reduction and shifting its product emphasis toward premium segments to improve profitability. The company had not provided immediate comments at the time of the announcement. The layoffs and plant closure mark a significant contraction of Electrolux's manufacturing presence in Italy amid broader efforts to address market pressures.