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EXCLUSIVE: Electrolux Revenues Slump 10% Sackings Tipped As Next

Electrolux Australia managing director, Kurt Hegvold went on a mission recently to spruke Electrolux Australia, their was no mention of a 10.7% fall in sales, moral problems at the Swedish appliance Company, or any mention of the high churn of senior management following the debacle over the sacking of the former sales director Michael Doyle who is now the CEO of Eurolinx.

Electrolux Managing Director Kurt Hevgold

The business who appears to be targeting former Samsung personnel, recently appointed Himal Jekishan to the role of product line director – care and wellbeing, it was only a few weeks ago he was flogging the benefits of Samsung TV’s. The appointment follows the appointment of Hass Mahdi in 2021 to the role of director – sales, following the departure of Chris Coen.

Hass Mahdi

 

Insiders that have spoken to ChannelNews are tipping “significant” job cuts at the Australian operation, whose parent Company recently reported an 8.4% decline in revenues globally with the Company now looking to dispose of assets after they rejected a recent takeover offer from Chinese appliance Company Midea.

Electrolux management claim that during the last quarter, consumer demand in Australia, fell leading to another fall in sales, compared to strong demand in the corresponding quarter last year.

Management recently reported that Australian revenues declined 10.7% driven by “significantly lower volumes mainly due to the weaker consumer demand, with consumers trading down, and amplified by retailer inventory reductions”.

Electrolux responded by lifting prices.

The business did deliver growth in key categories such as multi-door refrigeration and built-in cooking appliances.

Operating income also declined year-over-year, mainly due to lower volumes.

Ironically Hegvold used his local publicity rag Appliance Retailer to claim that he is now developing a sharpened and refocused blueprint for the Company.

Which as one senior appliance industry executive said, “Means layoffs are on the cards”?

He described it as a critical step for a more efficient and competitive Electrolux.

A recent document that was leaked to ChannelNews reveals that their 2023 Employee Engagement Survey revealed that employees only rated senior management 25/100.

In the past under the sales management of Michael Doyle and CEO Mike Putt management satisfaction survey results came in at 75/100 when rating management.

One thing that is working for Hegvold who has been given the opportunity to discuss the problems at Electrolux Australia but has not responded to our requests is that he may not have to sack too many people, because senior management are already exiting the Company that has been accused by people still employed in the business, of losing touch with what is needed in the cooking market.

Recently Anastasia Barlas, a former Marketing Manager and currently the head of Ownership and Customer experience quit after 7 years with the business.

Also leaving the Company was John Henley after several decades with the Swedish business.

Also quitting the business was Derek Haley, the former operations manager and at one stage acting general manager.

Also impacting the business was the controversial exit of former CEO John Featherstone who now has his own web site to spruke his track record to date and former HR Director Deb Bowden.

Hegvold said “Focusing on our ANZ business, it is clear in today’s rapidly evolving markets, it is vital for us to change faster than the environment around us. The dynamic markets and macroeconomic conditions across ANZ have seen consumers and retailers demanding more from us.”

Hegvold confirmed that this will impact Electrolux ANZ employees with new roles being introduced to further equip the business and some positions becoming redundant.

“Electrolux ANZ does not take actions that impact our people lightly. These are extremely difficult decisions, and we will manage through this transition with fairness, respect and care,” Hegvold said.



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