Whirlpool to Drain 5,000 Jobs
The contraction continues: Michigan-based appliance-maker Whirlpool said today that it will slash about 7 percent of its global workforce by the end of next year, thanks to the ongoing credit crisis and an expected decline in demand for big-ticket items.
Cash-strapped homeowners are deciding to nurse their veteran washing machines and fridges through another year, it seems.
"Declining home values, rising unemployment and very low consumer confidence levels will likely prolong a negative demand environment at least through the middle of 2009," Whirlpool chairman Jeff M. Fettig said in a release.
The news came during the company's third-quarter earnings report today, which showed a 7 percent decline in profits compared to the same period last year.
Whirlpool bought Maytag in 2006 for $1.8 billion.
The news sent shares of Whirlpool down 18 percent in late-morning trading.
-- Frank Ahrens
October 28, 2008; 11:33 AM ET
Categories: The Ticker
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