FILE PHOTO: The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014/File Photo
SINGAPORE: Swedish home appliances maker Electrolux will be shutting its regional headquarters in Singapore by May, potentially affecting around 100 to 200 employees, The Straits Times (ST) reports.
Sources said that most of the affected employees will be retrenched, although a handful have been offered relocation packages.
In response to queries from ST, Electrolux’s director of communication for Asia-Pacific, Middle East and Africa (Apac and MEA) transformation, Samar Refai, last Friday confirmed the imminent closure of its regional headquarters for Apac and MEA at Rochester Park, but did not comment on the May deadline.
She added that the impending closure was announced internally on Dec 13, 2023.
The Apac and MEA commercial leadership team will also relocate to Bangkok, said Refai.
“The imminent closure of Electrolux’s regional office in Singapore ultimately means that we will need to part ways with some of our regional employees. Those who are impacted are offered the maximum level of support, during the upcoming transition period, and are treated with utmost respect,” said Refai, without adding more details.
The writing has been on the wall for the Singapore regional office for a few months.
The multinational company announced in a statement in October 2023 that it would slash 3,000 positions from a total of 46,000 globally, as consumer demand remains weak.
Electrolux also said then that it would be merging the Europe and Apac and MEA business regions to leverage product and brand synergies.
Under the newly created business area Europe, Apac and MEA, there are two commercial organisations – one for Europe and another for Apac and MEA.
Refai said that with a newly established commercial set-up for Apac and MEA, Australia and Thailand will become key hubs for Electrolux in the region.
“Having the regional capabilities and competencies within these hubs ensures proximity to our customers, consumers, manufacturing sites, research and development, and innovation centres,” she said.
Electrolux has another office in Braddell Road, which handles product servicing and sales in Singapore, and it will remain open.
Refai said that the closure of the regional office at Rochester Park will have no impact on the operational business and trade relations in any of Electrolux Group’s markets in Apac and MEA, including the Singapore sales office in Braddell Road.
“Electrolux will continue to drive its important business in the Apac and MEA region, focusing on growth,” she added. — The Straits Times/ANN
