Volvo to Lay Off 2,000 Employees

Ford Motor Company’s Volvo Cars unit is planning to cut 2,000 jobs as part of a cost reduction programme which is estimated to reduce the total cost level by 4 billion SEK (approx. $700 million USD). The Swedish company said that it will lay off 1,400 white collar (consultants included) and 600 blue collar workers.

The notice includes 1,200 employees at Volvo Car Corporation in Gothenburg (1,105 employees), Volvo Car Sweden (45 employees) and Volvo Cars Body Components in Olofström (50 employees). Also, contracts with around 500 consultants will be cancelled while the company is also planning to reduce its workforce by 300 people abroad. -Continued

"This is an unfortunate but necessary action if we are to achieve a better financial position", said Fredrik Arp, President and CEO of Volvo Car Corporation. "We must tackle the difficult marked conditions, most of all in the US market. The market contribution to cover Volvo Cars' costs is very small", Arp continued