AB Volvo to cut white-collar workforce by 4,100 jobs as pandemic weighs
Reuters
Published Jun 16, 2020 09:31AM ET
Updated Jun 16, 2020 09:55AM ET
STOCKHOLM (Reuters) - Truck- and construction equipment maker AB Volvo (ST:VOLVb) plans to cut its white-collar workforce by around 4,100 positions during the second half of 2020, it said in a statement on Tuesday, citing the effects of the COVID-19 pandemic.
The outbreak of the novel coronavirus has slammed demand for trucks, forcing Volvo and its rivals to cut costs, with
fellow truck maker Scania (DE:8TRA) earlier this month flagging it was planning major job reductions.
"The corona epidemic and the global measures taken to fight it has led to a market situation impacting our industry severely," Volvo CEO Martin Lundstedt said in a statement.
"The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly."
Volvo said around 15% of the expected reductions were consultants, adding that about 1,250 positions were expected to be cut in Sweden.
The Gothenburg-based company, which employs some 104,000 staff, said late in April that net order intake of its trucks had dropped by 75% in March versus February and been net negative since then.
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Written By: Reuters
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