Maytag trims executives

December 8, 2000: 1:14 p.m. ET

Three senior officers eliminated in appliance maker's cost-cutting drive

NEW YORK (CNNfn) - Maytag Corp., the third-largest U.S. appliance maker, removed three senior-level executives Friday, one month after CEO Lloyd Ward resigned amid profit warnings and declining sales.

In the latest move in the company's restructuring, Jerome Davis, group president of Commercial Solutions; Gregory Jordan, former chief technology officer who headed the corporate technology and research and development group; and Carole Uhrich, former president of the Home Solutions group, all resigned effective immediately.

The company hopes that peeling away a management layer will speed decision-making and increase operating accountability at the business unit level. The company also said it will "significantly curtail" its investments in Web-based businesses and e-commerce investments.

Maytag, which makes Hoover, Maytag and Blodgett appliances, also said it plans to refocus its R&D spending on core product lines such as major appliances and floor care.

Newton, Iowa-based Maytag had been prospering when Lloyd Ward took over as chairman and CEO last August, but profits and the company's stock quickly nose-dived as Ward initiated deals with more moderate-priced retailers such as Home Depot (HD: Research, Estimates) while continuing to focus on the high-end cutting edge products Maytag is known for, such as its front-loading Neptune washer.

Ignoring the lower-priced products caused Maytag to warn it would miss third-quarter earnings estimates, sending it's stock price tumbling 26 percent.

The sudden stock drop spurred rumors of an acquisition by Sweden's AB Electrolux. Merrill Lynch analyst Justin Maurer said such executive trimming and refocusing of research spending might help fend off a takeover.

"The bottom line on all this stuff is that for those of us sitting out there hoping, wondering if the company's going to be sold, the more of these types of things being announced, puts a possible takeover further away," Maurer said.

Maytag (MYG: Research, Estimates) shares slipped 25 cents to $30.31 in midday trading Friday.