ELECTROLUX TO REDUCE WORKFORCE BY 1700 PEOPLE

MILAN, MAY 11 /SRNA-REUTERS/ - plans to lay off 1,700 workers in Italy, more than 40 percent of its workforce in the country, and close one of its factories, Italian trade unions said.

The company plans to shut down a kitchen appliance factory near Ancona and reduce staff across all of its plants, according to the unions.

The Swedish household appliances manufacturer has been facing weak demand and competition from lower-priced products. The company's share value has fallen by 75 percent.

Electrolux has therefore announced layoffs and restructuring measures, including cost cuts and a focus on premium product categories in an attempt to improve profitability.

The company operates five factories in Italy, employing a total of 4,500 workers.