Whirlpool slashes profit forecast, cuts over 5,000 jobs

Whirlpool Corp, the world’s largest appliance maker, slashed its full-year profit forecast and said it would cut about 10 percent of its workforce in North America and Europe, to protect margins in a weak economic environment.

The maker of Maytag and KitchenAid appliances will cut more than 5,000 positions and said it would close down its plant in Fort Smith, Arkansas, and reduce its overall manufacturing capacity by about 6 million units.

The company, which employs 71,000 people globally, said the job cuts include about 1,200 salaried positions.

“Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions,” Chief Executive Jeff Fettig said in a statement.

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The cost-cut move is expected to save $400 million annually by the end of 2013, Whirlpool said.

Appliance makers around the globe have suffered as shoppers cut back spending on expensive items like washers and dryers in a weak economy.

Whirlpool, which also reported lower-than-expected quarterly results, now expects a full-year profit of $4.75-$5.25 per share, down from its previous estimate at the low-end of $7.25-$8.25 a share.

Reuters