Swedish multinational Electrolux has announced plans to cut 1,700 jobs in Italy out of a workforce of around 4,500 employees, including the closure of its Cerreto d’Esi plant in the province of Ancona.

The decision marks the latest chapter in a crisis that has been building for years across Europe’s household appliance industry. Weak consumer demand, rising operational costs and increasingly fierce global competition have severely affected traditional manufacturers.

The European market has fallen back to sales volumes not seen in more than a decade, as many households postpone purchases and existing products remain in use for longer. At the same time, Chinese companies such as Haier, Midea and Hisense have transformed the competitive landscape by offering affordable appliances with acceptable quality standards, putting Western producers under intense pricing pressure.

Electrolux said the restructuring reflects the need to adapt to a market environment characterized by shrinking margins and growing operational complexity. The move is expected to have a major impact on Italy’s manufacturing sector and local communities tied to the affected plants.