Whirlpool Slashing Jobs - TheStreet

Whirlpool Slashing Jobs

The Maytag cost cutting begins.
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(WHR) - Get Report

set plans to slash 4,500 jobs as it moves to integrate its recently completed Maytag acquisition.

Benton Harbor, Mich.-based Whirlpool said it would close three factories and shut down a number of administrative offices, including Maytag's headquarters in Newton, Iowa. The company said 1,800 salaried positions will be included in the cutbacks.

The preliminary estimate of termination and relocation costs resulting from consolidation of Maytag administrative offices is $135 million to $145 million. Non-employee exit costs associated with laundry facility closings are $30 million. Whirlpool said it is unable to estimate the termination costs associated with the manufacturing facility closings.

The company said it currently plans no further manufacturing facility closures related to the Maytag integration process, though it will continue to aggressively pursue ongoing productivity improvements across its global operating platform. At the same time, Whirlpool will continue to evaluate strategic options for, including the potential sale of, the Hoover floor-care and the Dixie-Narco, Amana commercial microwave and Jade commercial appliance businesses.

Whirlpool said it expects to hire 1,500 workers at other Whirlpool locations, resulting in a net firing of 3,000 workers.

"We are taking these actions to rapidly restore the competitiveness of the Maytag brands," said CEO Jeff M. Fettig. "This is an important step in our integration process that will allow us to drive continuing performance improvements and will better align our brands, products and operations with the markets we serve domestically and globally."