Beko to Restructure Italian Operations, Laying Off Approximately 2,000 Employees
Beko Europe has announced a long-term business transformation plan for Italy. Following a joint statement from the Fim, Fiom, Uilm, and Uglm unions, the company confirmed that it will lay off 1,935 of its 4,440 employees, citing poor financial performance in Italy due to a challenging industry context which includes increased competition from Asian players and weakening demand.
Today, during a meeting with unions at the Ministry of Business and Made in Italy in Rome, Beko Europe presented its long-term business transformation plan for Italy. The meeting took place after a comprehensive review of the company's operations in Europe, following a meeting held on November 7.
The statement revealed, “The review showed that a significant portion of the production base is performing financially poorly as a result of a challenging industry context, including increased competition from Asian players and weakening demand. In this context, the current capacity utilization rates in Italy are unsustainable, dropping to below an average of 40% this year, which is 20% less compared to 2017 when industry sales in Europe were at today’s levels. This situation has led to significant losses amounting to tens of millions of euros over the past seven years. The announced business transformation plan will optimize current operations and reshape the company's presence in Italy to establish a sustainable long-term footprint. The aim is to maintain a strong manufacturing base in Europe and position Italy as a strategic hub in Beko’s global operations.”
The statement further indicated that Italy will become a center of excellence for global cooking, supported by a €110 million investment in global industrial design and research and development (R&D). It noted, “The new investment will enable the design of new products by leveraging robotics, automation, and digitalization. Italy will continue to be an important decision-making center in strategic functions including HR, marketing, supply chain, IT, R&D, and product design.”