Electrolux cuts jobs on collapse of General Electric Co appliance deal

Electrolux will cut costs and jobs and pay a breakup fee to General Electric Co after the collapse this week of the Swedish manufacturer’s $3.3 billion (€3bn) deal to buy the US company’s household appliance business.

Electrolux will reduce costs at its small-appliances division to save an expected 120 million kronor (€12.9m) annually starting at the end of next year, the Stockholm-based company said.

Costs related to the programme will amount to 190m kronor, with staff reductions and reduced operations in the US, Sweden and China.