Electrolux shares drop 13% as appliance maker hit by squeezed households

Company to cut 3,000 jobs in bid to reduce costs

Jonas Samuelson, chief executive of Electrolux: Consumers shifting to lower prices.

Shares in Sweden's Electrolux dropped as much as 13% as third-quarter core profits were far below expectations, while the company vowed yet more cost reduction, such as cutting 3,000 jobs, to tackle weak demand and pricing pressure from rivals. 

Cash-strapped consumers remain unwilling to splurge on pricey household appliances, while Electrolux's high costs show no sign of subsiding, leading the Swedish company to struggle with profitability.