GE Appliances Layoffs: US-Based Home Appliances Manufacturer Will Lay Off Around 2,700 Employees Amid Challenges Faced by Appliance Industry
GE Appliances layoffs have been announced resulting in 2,700 employees losing their jobs amid industry facing challenges and conservative consumer spending. The layoffs were announced due after trying cost-saving actions and will reduce 4% workforce.
Louisville, July 12: Haier Electronics Group-owned GE Appliances announced to its employees about its plans to reduce its global workforce by 4%. The GE Appliances layoffs will affect around 2,700 employees working at GE Appliance Park based in Louisville, Kentucky. GE Appliances said it made the difficult decision to lay off its employees after trying to implement cost-cutting measures. However, the the industry-wide downward trend put significant pressure on the company resorting to layoffs.
Louisville-based GE Appliances offers home appliances in the United States and has been owned by the Chinese multinational electronics appliances company Haier since 2016. According to a report by Courier Journal, GE Appliances said that after exhausting all avenues, came to a difficult decision to reduce its workforce amid the challenges faced by the appliances industry. PwC China Layoffs: UK-Based Fintech Consulting Firm Lays Off 100 Employees From Various Departments After Losing 30 Major Clients in Country.
The report said that a company spokesperson, Julie Wood, confirmed the GE Appliances layoffs for the global workforce. The massive layoff decision would lead to about 2,700 salaried employees losing their jobs at GE Appliance Park in Louisville. The spokesperson also added that the cost-saving actions alone were not enough to offset the pressure, so the company decided to reduce 4% of the workforce.
The GE Appliances spokesperson, Julie Wood, further said the industry had been struggling with several challenges. The higher interest rates made it difficult to enter the housing market, and inflation made consumers more conservative about spending on large appliances, she added. She emphasised that GE Appliances layoffs were the "last thing we want to do." Julie Wood shared that the company had already tried lowering its operating costs by reducing discretionary spending and made efforts to simplify the process. CNN Layoffs: US-Based Cable News Network Cutting About 100 Jobs, Plans to Debut Digital Subscriptions Before Year's End.
Despite these efforts, the company came to a decision about layoffs and sent a 30-day notice of separation to the workers and six months of severance based on the year of employment. Wood also said that the company would continue medical coverage for six months and also would offer professional outplacement support for the affected. Previous GE Appliances layoffs resulted in a 5% workforce reduction in 2022.
(The above story first appeared on LatestLY on Jul 12, 2024 12:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).