Three months after one Swedish-based company announced that it was moving its American headquarters out of Augusta, its former sister company is following suit.
Electrolux said Tuesday that it was consolidating seven of its American offices, including its headquarters in Augusta.
The company isn't discussing the possible cities for the new headquarters, but spokesman Tony Evans said Augusta is not one of them.
Electrolux employs 315 people in its Major Appliances North American headquarters on Bobby Jones Expressway.
"This change will enable our U.S. operations to better meet the future needs of our customers, our business and our shareholders. We will work diligently to deliver a seamless transition, while working closely with impacted employees and communities," Kevin Scott, the president and CEO of Electrolux Major Appliances North America, said in a statement.
The customer care call center, however, is not part of the consolidation, Mr. Evans said, and will remain in Augusta. The call center employs 100 full-time and 115 part-time people.
Husqvarna Outdoor Products Inc., which was a spinoff from Electrolux, announced in August that it was moving its headquarters out of Augusta to Charlotte, N.C.
That relocation, and loss of 100 jobs, should be complete by the summer.
Electrolux has its American sales office north of Charlotte, in Huntersville, N.C., which was named as part of the consolidation. Other offices affected by the consolidation are an international sales office in Pittsburgh, the holding company office in Cleveland, financial support offices in Columbus, Ohio, and Springfield, Tenn., and a design center in Anderson, S.C.
"Our current locations are grounded primarily in our growth through acquisitions, not on strategic business decisions. I'm excited that our different business sectors and support functions will work under one roof," said Hans Straberg, president and CEO of Electrolux Group.
Consolidation will begin in the summer.
The appliance maker is still selecting the location and will announce its decision before the end of the year, Mr. Evans said.
Other Electrolux entities will also move their corporate office operations and support functions to the new headquarters, but the timing of additional moves hasn't been determined, Mr. Evans said.
Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.
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I never liked their screwy things (clocks?) anyway.
Not funny. And not good for the home team.
What do you expect with Augusta in the kind of turmoil it is in? These big shot, corporate HQ types don't want any part of it and who can blame them?
Gee, someone should tell them that the I-20 upgrade is complete and they can now have lunch at Sconyers again. That is the only reason I can think of that they wouold stay.(Where else is there to eat in Augusta?)
The Village Deli, Bees Knees, Rooster's beak, Bistro 491, Pizza Joint, Rae's Coastal Cafe, Tako Sushi, Rhineharts, Five Guys, Moes, French Market, Yo Pizza, Wild Wing, Zaxbys, Public House, Casa Blanca, Mellow Mushroom, Garys Hamburgers, etc....
Where is our airport and how much service does it offer afford ably iin and out? How many of those are direct flights? Exactly.
Charlotte has 2 interstates and is 30 miles from another. It has an international airport with a large number of direct flights. Augusta can't compete with that. Ever.
The only reason Electrolux moved to Augusta from Columbus Ohio in 1998 was because it was bought by American Yard Products - which became part of Husqvarna. Yes, people when the numbers are bad, the economy is bad, a company can't make money, and there is little/no support from the Augusta/Richmond Co government to support a facility like that - why would they stay? It's sad to see them go, but that has been a process in the making for YEARS! This will hurt the overall economy of Augusta, Martinez, and Evans make no mistake about it.
I agree with walrus4ever. I also worked with this company out of the Augusta office and was laid off last year Nov 08. Moved on to something better. All things happen for a reason. Its really sad to hear about all those employees losing jobs. I have heard this has been in the making for years now, I guess they have finally decided to move forward with it.
Every company out there has to do what it feels is best for its shareholder's (who the leadership answers to) profitability. Sadly, I am, personally, affected by this move, but I will keep moving forward. Fortunately, I feel I am well prepared. I was looking for a job when I got hired. Over the next six months or so, I will do whatever is necessary to take care of my family.
Brianw. What?!?!?! You aren't going to bow down to King Obama and asked for a handout? Seriously, good luck to you. I wish we had more folks like you!
Charlotte NC is also an International Duty Free Zone along with Birmingham AL. Multinational Corporations must have some help to stay in the tax ridden U S of A.
Might be that Electrolux did not "grease the right political hand" and see their taxes disappear. Mayor Deke sees this as a positive economic move. Of course everything in Augusta is a positive.
Deekster, even if Augusta or Columbia County offered tax breaks, do you not think other cities offer them as well? Electrolux's Augusta site is not large enough for expansion to bring together all the offices they want to consolidate. If they are going to have to pay for a new location they probably figure they might as well make it somewhere more suitable for a large company. Augusta does not have the airport, roads, etc of a major city. This is also why I do not believe many conventions will be coming here, Tee Center or not.
Does this mean Duffer's Indoor Golf is coming back?
Augusta is not a completive place for industry nor is it a desirable residential destination. We can change the resendtall desirability by enacting a Chronic Nuisance Property Ordinance.
Two years ago, Electrolux of Augusta fired over forty employees that worked at the call center. It was never made public. Over forty employees and nobody said anything? Well, it would have brought bad publicity for the company and affected it shares value at the NYCE. My brother in-law, Edmundo Acevedo, was the manager of the call center at Electrolux. As the manager of the call center, he recruited his subordinates to help him defraud the appliance division by buying home appliances at employee's prices and repay them on a deffered payment plan, then he would intercept the paperwork before it reached human resources, so the money would have never been taken out of his and their paychecks. They all got fired with a lump sum of money. Ironic?
They're probably going to need the money to pay the lawsuits... About 900 Electrolux ICON and Kenmore 30-inch PRO gas ranges made in Canada by Electrolux Home Products Inc., of Augusta, Ga., because an incorrect part allows more fuel to pass to the range's oven than can be burned efficiently. This poses a risk of carbon monoxide poisoning to consumers. Electrolux has received four reports of carbon monoxide being released from the recalled gas range. No injuries have been reported. The recalled products were sold at appliance retailers nationwide from August 2008 through October 2009. Details: 888-360-8557 and 800-733-2299; on the Web at http://www.gasrangeorifice.com or http://www.cpsc.gov.