Volvo to cut 1,300 jobs in Sweden
Volvo has announced that it is cutting 1,300 white-collar jobs in Sweden.
The move has been made all the more urgent because of the drop in car sales caused by measures to reduce the spread of the coronavirus, the manufacturer said.
Hanna Fager, head of People Experience at Volvo, said: “The coronavirus pandemic is affecting us in the short term, but we expect volumes and growth to return,”
“So we need to continue investing in our ongoing transformation and new business areas, by reducing structural costs.”
On top of this initial cut in jobs, Volvo states that it will push forward with a ‘continued review and reduction’ of consultancy contracts.
Though the Swedish manufacturer announced the re-opening of sites last week, the month-long shutdown prior to that will have caused a deficit in production. It currently employs around 24,000 people in Sweden.
Volvo currently produces seven individual models and aims to increase the number of electric cars it offers to 50 per cent of overall sales by 2025.