DES MOINES, IA-Maytag Corp. is cutting its salaried workforce by 20 percent, or 1,100 jobs, as part of a restructuring. The company also lowered its earnings expectations for the year.
The layoffs will come mostly at Hoover's factory in North Canton, OH, but some cuts will also be made at company headquarters in Newton, IA. The 1,100-job reduction will bring Maytag's total workforce to 19,500. The company is citing lower sales and higher materials costs as the reasons for this move.
Under the restructuring plan, the Hoover brand will join the existing business units-Maytag, Jenn-Air and Amana-into a "one-company" approach that will improve speed and competitiveness.
"Maytag will be a much leaner organization, capable of better serving customers and more rapid decision-making," says Ralph F. Hake, chairman and CEO.
The restructuring will be completed by the end of the year and is expected to save the company $150 million annually.