Electrolux has scaled back its planned restructuring in Italy, reducing the number of jobs at risk and agreeing to avoid compulsory redundancies, according to unions and Italy's industry ministry. The appliance maker now plans around 1,250 job reductions in Italy, down from as many as 1,700 initially envisaged. The revised approach will rely on voluntary exits, furlough schemes and other measures over three years.
The change came after talks in Rome involving Electrolux, trade unions and Italy's Minister for Enterprises and Made in Italy, Adolfo Urso. The revised plan also leaves open the possibility of finding a buyer for Electrolux's kitchen hood plant in Cerreto d'Esi, central Italy, which had initially been marked for closure. Production would continue while a potential buyer is sought.
For workers, the most important change is that the restructuring will no longer rely on forced dismissals. Instead, Electrolux is expected to use voluntary departure incentives and social support measures over a three-year period. The Italian industry ministry also said no plant would be closed under the new approach, with a reindustrialisation process planned for Cerreto d'Esi.
Italy's industry minister Adolfo Urso described the agreement as a change in direction after the talks.
A new phase is finally beginning. What we've accomplished today is a step in the right direction.
The statement reflects the government's effort to keep manufacturing capacity and employment in Italy while the appliance industry faces broader competitive and economic pressures. But the agreement does not mean the restructuring is over. A significant number of jobs remain at risk, and unions are still asking for further reductions in the number of planned departures.
Gianluca Ficco of the UILM union said workers' representatives welcomed the company's revised approach, but argued that the remaining job reduction target was still too high.
For reaching an agreement, the Cerreto d'Esi factory must be saved and the number of redundancies reduced.
UILM said the number of excess positions it identifies is still 1,385, showing that there is a difference between the company's revised plan and the unions' assessment of what is required to protect employment. The union also said government support would be important because the Italian household-appliance sector is facing serious difficulties.
That distinction matters because the headline reduction from 1,700 to around 1,250 jobs can make the restructuring appear largely resolved. It is not. Hundreds of workers could still leave the company, although the revised mechanism gives employees more control over how those departures take place.
The Cerreto d'Esi plant is particularly important in the negotiations. Under the earlier restructuring plan, the facility was earmarked for closure. The new proposal instead keeps the plant operating while Electrolux looks for a potential buyer. That creates the possibility of preserving industrial activity at the site rather than simply ending production.
The Italian government is also seeking to connect the restructuring to a broader industrial strategy. The ministry said the new proposals include investments supporting the company's industrial transition, alongside social safety measures and voluntary exits. The next formal meeting between the government, company and unions is scheduled for October 29, although further discussions could take place before then.
For Electrolux, the restructuring reflects the pressure facing a major appliance manufacturer operating in a competitive European market. The company needs to adjust its workforce and operations, but the Italian government and unions are pushing for a transition that protects as much production capacity and employment as possible.
This is where the revised plan becomes more interesting than a simple story about job cuts. Electrolux is still reducing its workforce, but the method has changed. Instead of compulsory redundancies, the company is relying on voluntary departures, furloughs and other social measures. At the Cerreto d'Esi site, it is also considering a sale rather than an immediate shutdown.
That approach could reduce the immediate disruption for workers while giving the company time to restructure its Italian operations. It also gives unions and government officials more opportunity to negotiate over investments, production and the future of individual plants.
But the agreement remains a work in progress. The unions are waiting for more detail on the incentives for voluntary departures and want further reductions in the number of positions classified as excess. The future of Cerreto d'Esi will also depend on whether a suitable buyer can actually be found.
The next stage of the negotiations will therefore determine whether the revised plan becomes a sustainable industrial agreement or simply a softer way of implementing a substantial workforce reduction.
For now, the biggest change is clear: Electrolux has moved away from compulsory redundancies in Italy, reduced its planned job cuts and kept the door open for Cerreto d'Esi to continue operating under new ownership. The challenge is turning those commitments into a long-term plan that protects both the company's competitiveness and the workers whose jobs remain at risk.