Whirlpool to Cut 5,000 Jobs

Whirlpool Corp. said Tuesday that it is eliminating about 5,000 jobs this year and next. This is due to large part in the long downturn in the U.S. housing market. They are the nation's largest home appliance maker and they also reported that their earnings fell 7 percent during the third quarter on lower global unit volumes and higher material costs.

Additionally, Whirlpool lowered its earnings outlook for the year and announced price increases. They said the global credit crisis has had a profound negative impact on what was already a weakening and very fragile global economy. Because of declining home values, rising unemployment and very low consumer confidence levels, it will likely prolong a negative demand environment at least through the middle of 2009. Also with gas prices and grocery prices taking a big chunk out of what paycheck is left, if you don't need a new appliance, you are going to put off getting one. You have to get your priorities in order and food and a roof over your head are your main concern these days.