Home appliances manufacturer Whirlpool has announced it is to cut more than 5,000 jobs in a bid to reduce its cost base.
Announcing its financial results for the third quarter, the company said it had "experienced weaker than expected global industry demand and elevated material costs".
Sales for the quarter stood at $4.6bn, up 2 per cent on the previous year, which Whirlpool put down to favourable currency fluctuations. However, operating profit for the period totalled $136m, down from $234m in 2010.
In response to the figures, Whirlpool said it would look to lose approximately 10 per cent of its workforce in North America and Europe – around 5,000 positions. Site closures, a production relocation plan and efficiency drives are also planned. The company hopes its actions will lead to savings of $400m annually by the end of 2013.
Jeff M Fettig, Whirlpool Corporation chairman and chief executive, said: "As we previously indicated, in a period of uncertain economic growth and consumer demand, we would be prepared to take the necessary actions in order to expand our operating margins and improve our earnings.
"Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions. The plans are the result of a comprehensive global review of our operations, products and manufacturing facilities."