Volvo to lay off 1,300 employees to cut costs
- May 4, 2023
- 0
Volvo Cars said on Thursday it will lay off about 1,300 office workers in Sweden as part of its cost-cutting move. As reported by Ukrinform, this was reported
Volvo Cars said on Thursday it will lay off about 1,300 office workers in Sweden as part of its cost-cutting move.
As reported by Ukrinform, this was reported by Reuters.
“Economic challenges, rising commodity prices and increased competition will likely continue to challenge our industry for a while,” CEO Jim Rowan said.
He added that despite its effectiveness, the previous attempt to increase efficiency was not enough.
1,300 jobs represent 6% of Volvo Cars’ workforce in Sweden.
Rowan also said that the exact amount of future savings after the layoffs is unknown.
The company has issued a layoff notice to 1,100 employees. The other 200 jobs will be determined after businesses in Sweden are screened.
The company added that it plans to cut headcount and cut costs across all of its global operations, including consulting, in the coming months.
Rowan said she can’t say exactly where the cuts will be made at this time, but the changes will focus heavily on office positions.
As Ukrinform reported, in March the concern Volvo Group announced plans to restructure its European bus manufacturing company, leaving the factory in Poland.
Source: Ukrinform
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