We’re getting a little clearer picture on the huge scope of Whirlpool Corporation’s recent restructuring plans following release of their Form 8-K filing with the U.S. Securities & Exchange Commission in Washington, D.C.
The Benton Harbor-based appliance giant has pegged the cost of their workforce reduction plan at roughly $95-million according to the report to the SEC. That’s a total of both the voluntary retirement program announced in May and the subsequent involuntary severance actions telegraphed to employees last week and carried out on an emotional day yesterday, Monday, June 29th.
The report to the SEC says, “On June 26, 2020, Whirlpool Corporation committed to a workforce reduction plan in the United States, as part of the company’s continued cost reduction efforts. The workforce reduction plan includes a voluntary retirement program and involuntary severance actions which will be effective as of the end of the second quarter of 2020.”
Continuing, the report says, “The company expects the actions to be substantially complete in 2020. As such, the company estimates that it will incur a total of approximately $95 million in employee termination costs, and expects substantially all of the costs to result in cash expenditures in 2020.”
In conclusion, the report which is also dated June 26th, says, “The company now expects total restructuring charges of $260 million to $280 million for fiscal year 2020, which includes the company’s original guidance of $100 million, the U.S. actions outlined above, and anticipated additional restructuring actions in 2020.”
Whirlpool has not disclosed the number of employees impacted by the workforce reductions, either on a local or national scale. You can see the report of Monday’s actions at this link:
https://www.moodyonthemarket.com/difficult-day-for-whirlpool-employees-as-more-job-cuts-ensue/
