Volvo Automobiles will lay off round 1,300 office-based workers in Sweden because it steps up value reducing, the Sweden-based automaker mentioned on Thursday.
Whereas an earlier effectivity drive had begun to indicate outcomes, with Volvo this week reporting a robust first quarter, extra effectivity was wanted, CEO Jim Rowan mentioned in a press release.
“Financial headwinds, elevated uncooked materials costs and elevated competitors are more likely to stay a problem to our business for a while,” he mentioned.
The 1,300 positions equate to six% of Volvo Automobiles’ workforce in Sweden.
Rowan advised Reuters the group didn’t but know the way a lot it might save from the brand new measures. “We’re nonetheless working the main points by on that,” he mentioned in an interview.
The corporate mentioned it had issued redundancy notices for 1,100 workers, whereas the remaining 200 white-collar positions could be recognized following a overview of the enterprise throughout Sweden.
It mentioned it additionally anticipated to chop jobs and cut back prices throughout its world operations within the coming months, together with its consultancies.
Rowan mentioned he couldn’t but specify the place these jobs could be reduce, however that focus would primarily stay on office-based positions.
“We promote in over 80 international locations or so worldwide, so I believe there’s alternatives for us to change into extra environment friendly throughout the whole community,” he advised Reuters.
Volvo Automobiles shares had been down 3.87% at 0848 GMT.
