Whirlpool details costs for workforce reduction plans

In a regulatory filing, Whirlpool disclosed that, as previously disclosed in the company’s quarterly report for the quarter ended March 31, the company committed to global workforce reduction plans in March 2024. The First Quarter Workforce Reduction Plans were an effort to reduce complexity and simplify the company’s organizational model after the European major domestic appliance transaction, which was completed on April 1. The First Quarter Workforce Reduction Plans included involuntary severance actions and employee notifications in March 2024. Total costs for these actions were $23M, of which the company incurred $14M in employee termination costs and $9M in other associated costs within Q1. During Q2, the company evaluated additional restructuring actions as part of the company’s complexity reduction and organizational simplification efforts. On April 29, the company began the employee notification process for an additional global workforce reduction plan, including involuntary severance actions. Total expected costs for actions under the Second Quarter Workforce Reduction Plans are an estimated $52M-$57M, primarily in employee termination costs, which Whirlpool expects to incur within Q2 of 2024. The company expects total restructuring charges of approximately $75M-$80M for FY24, reflecting amounts under the First Quarter Workforce Reduction Plans and Second Quarter Workforce Reduction Plans. The company expects these workforce reduction actions to be substantially complete in 2024. As such, the company estimates that it will incur a total of approximately $63M-$67M in employee termination costs and approximately $13M in other associated costs in 2024, and expects substantially all of the costs to result in cash expenditures in 2024.