Electrolux, the global appliance company, has axed a third of its
marketing department following a wide-ranging review designed to cut
costs and improve efficiency.
Ten marketing staff, who worked on the company’s Electrolux, Zanussi,
AEG, Tricity Bendix and Parkinson Cowan brands, have lost their jobs in
the shake-up. Five of those were at marketing manager level.
Group marketing director Ian Symes said the job cuts were the result of
a decision to move away from a traditional business unit system, in
which each brand handled its own marketing, to a centralised
’Price competition is fierce and Electrolux needed to become focused and
more efficient,’ said Symes. ’We have re-engineered every marketing
process and are now more customer-focused.’
Under the new structure, the number of people working on each brand has
been reduced from six to three, with many basic marketing activities
switching to multi-brand marketing services, headed by Sue Burgess.
Each brand team will report to its own head of marketing: Lynn Hillman
will head AEG; John Kershaw Zanussi; and Marcus Bleasdale will be
responsible for the Electrolux, Parkinson Cowan and Tricity Bendix
Symes said there were plans to consolidate Electrolux’s number of
suppliers but that this would affect areas such as distribution and
print, rather than advertising and PR. Last month, Electrolux
centralised its pounds 5.5m media account into Zebra Media.
The UK restructuring follows a global review of the Electrolux business
in the wake of flat profits. About 12,000 jobs are expected to be lost
worldwide - 1300 of them in the UK.