Whirlpool Corp. is all set to cut down its 10% workforce in Europe and North America as a protective measure to maintain its margins slashing the analysts forecast of this fiscal year as the economic environment in the two continents weakens.

Whirlpool Corp. reported lower quarterly results than expected. Though, experts predict a profit of $4.75 to $5.25 per share this fiscal year, down from its earlier forecast that suggested the profits to range from $7.25 to $8.25 a share.

World’s largest appliance maker will cut its workers’ strength by downsizing above 5,000 positions. Company also announced that it will close its manufacturing plants at Fort Smith, Arkansas, shrinking its total manufacturing capacity by almost 6 million devices.

The maker of KitchenAid and Maytag appliances, Whirlpool Corp. said that the aggressive plan will result in substantial capacity and cost reduction. Chief Executive Jeff Fettig expects that this cost cutting move will save the company $400 million on an annual basis by the end of 2013.

Whirlpool Corp. (Whirlpool) manufactures and markets home appliances and products under 13 brand names in 12 countries. The company employs 71,000 people world wise, informed that the job cuts take in 1,200 salaried positions.

Home appliance makers across the globe have suffered due to the weak economical crisis that lead to a shrink in consumers demand for devices such as washers and dryers and other home appliances.