Whirlpool Cuts 1,000 Jobs Globally Amid Slow US Home Sales

Whirlpool to cut 1,000 jobs globally as US home sales slow, aims to trim $400M in costs to offset weak demand and rising expenses.

Ebenezer Mensah
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Whirlpool Cuts 1,000 Jobs  Globally Amid Slow US Home Sales

Whirlpool Cuts 1,000 Jobs Globally Amid Slow US Home Sales

Whirlpool Corp, the home appliances maker, announced that it will lay off about 1,000 salaried employees globally. The company said it first cut jobs in March and expects a second wave of reductions by early May. Whirlpool aims to trim up to $400 million in costs this year and expects to incur about $50 million of restructuring charges in 2024.

The job cuts and cost-saving measures are attributed to slow US home sales, which has reduced appliance demand from Whirlpool's Maytag and Amana brands. Whirlpool reported a 3.4% drop in its first-quarter net sales to $4.49 billion. The company had about 59,000 employees globally as of last year.

Why this matters: Whirlpool's job cuts reflect the broader challenges faced by the home appliance industry due to the slowdown in the US housing market. The company's cost-cutting measures highlight the need for businesses to adapt to changing market conditions and consumer demand in order to maintain profitability.

Whirlpool's Chief Financial Officer Jim Peters stated, "We are committed to our workforce reduction plans and expect to incur about $50 million of restructuring charges in 2024." The company is facing increased pressures from rising costs and is aiming to achieve a $400 million expense reduction target for the year.

Sales of large appliances in North America fell 8.1% in the first quarter, and revenue was below analysts' estimates. To offset weak demand for large appliances, Whirlpool is focusing on smaller, counter-top appliances such as KitchenAid stand mixers and battery-powered blenders, which are more profitable. The company is also entering a new category by introducing fully automatic espresso makers.

Whirlpool's job cuts and strategic adjustments to its product lineup are part of its efforts to adapt to the changing market conditions and maintain its profitability. The company's first-quarter results, including a 3.4% decline in net sales to $4.49 billion, underscore the challenges it faces amid the slowdown in US home sales and rising costs.

Key Takeaways

  • Whirlpool to lay off 1,000 salaried employees globally due to slow US home sales
  • Whirlpool aims to trim $400M in costs in 2023 and incur $50M in restructuring charges in 2024
  • Whirlpool's Q1 net sales dropped 3.4% to $4.49B, reflecting weak demand for large appliances
  • Whirlpool shifts focus to smaller, more profitable counter-top appliances like KitchenAid mixers
  • Job cuts and strategic adjustments aim to help Whirlpool adapt to changing market conditions