Whirlpool Is Cutting 1,000 Jobs as US Appliance Demand Remains Stagnant

Whirlpool refrigerators at a distribution center in Texas.

(Bloomberg) — Whirlpool Corp., the owner of the Maytag and Amana appliance brands, is cutting about 1,000 salaried positions worldwide to reduce costs as slow US home sales limit demand.

The company has completed its first wave of layoffs of office staff and is planning to start another soon, Chief Financial Officer Jim Peters said in an interview. Earlier this year, the company said it was cutting jobs without saying how many. Whirlpool employed 59,000 workers worldwide as of the end of 2023.

“The discretionary side that’s driven by existing home sales really has seen no pick up and no benefit yet,” Peters said, referring to weak US demand. “We’re simplifying our structure,” he added.

The Benton Harbor, Michigan-based company is trying to reduce expenses by about $400 million this year, but that’s proving tougher than expected due to higher costs for labor, transportation and logistics. “We’ve seen inflation remain sticky,” Peters said.

Sales of large appliances in North America fell 8.1% in the first quarter from a year earlier, Whirlpool announced Wednesday. Revenue was $4.49 billion in the period, a decline of 3.4% and below analysts’ average estimate.

Low existing home sales in the US have eroded demand for new refrigerators and washers. But Whirlpool is seeing signs that Americans may be shifting to remodeling their homes in lieu buying new ones.

“We are starting to see some positive signs” on remodeling, Peters said, adding that some property owners are using their home equity to fund renovations.

Whirlpool has cut back on discounts and promotions while turning to smaller, counter-top appliances such as KitchenAid stand mixers and battery-powered blenders to offset weak demand for large appliances. It’s also entering a new category by introducing fully automatic espresso makers. The company says these smaller items are more profitable.

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