Whirlpool Overhaul To Cost 4,700 Jobs

Whirlpool Corp. on Thursday announced plans to cut 4,700 jobs and sell its financing business in a restructuring aimed at saving the world’s largest appliance maker $180 million a year.

Whirlpool’s announcement was greeted favorably on Wall Street, where its stock rose $9.19 to $66 on the New York Stock Exchange. The proposed job cuts could total 800 in North America, roughly half involving positions near the company’s Detroit headquarters.

Christopher Wyse, a company spokesman, said the impact of the job cuts - perhaps beginning later this year - should be lessened by people quitting and retiring. Costs of implementing the restructuring will reduce third-quarter earnings by $350 million.

The move is part of an effort to merge manufacturing, service and support facilities while bolstering Whirlpool’s presence in Asia and Latin America.

John Goldfarb, who follows Whirlpool for Merrill Lynch, said the new strategy appeared “radical” and “could return the company to a mode of attractive growth and much higher profitability.”