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Volvo Cars to axe 1,300 jobs as it steps up cost cuts
Global Banking & Finance Review®
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COPENHAGEN (Reuters) -Volvo Cars will lay off around 1,300 office-based employees in Sweden as it steps up cost cutting, the Sweden-based auto maker said on Thursday.
COPENHAGEN (Reuters) -Volvo Cars will lay off around 1,300 office-based employees in Sweden as it steps up cost cutting, the Sweden-based auto maker said on Thursday.
While an earlier efficiency drive had begun to show results, more was needed, CEO Jim Rowan said in a statement.
“Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time,” he said.
The 1,300 positions equate to 6% of Volvo Cars’ workforce in Sweden.
Rowan told Reuters the group did not yet know how much it would save from the new measures. “We’re still working the details through on that,” he said in an interview.
The company said it had issued redundancy notices for 1,100 employees, while the remaining 200 white-collar positions would be identified following a review of the business across Sweden.
It said it also expected to cut jobs and reduce costs across its global operations in the coming months, including its consultancies.
Rowan said he could not yet specify where those jobs would be cut, but that focus would primarily remain on office-based positions.
“We sell in over 80 countries or so worldwide, so I think there’s opportunities for us to become more efficient across the entire network,” he told Reuters.
Volvo Cars shares were down 3.87% at 0848 GMT.
(Reporting by Louise Breusch Rasmussen Eediting by Terje Solsvik and Mark Potter)
Unemployment refers to the situation when individuals who are capable of working are unable to find a job. It is often measured as a percentage of the total workforce.
Economic benefits are the advantages or positive outcomes that arise from economic activities, such as job creation, increased productivity, and improved living standards.
Corporate strategy is the overall plan for a company to achieve its goals and objectives, focusing on long-term growth and competitive advantage.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to a loss of confidence and potential economic downturn.
Job creation refers to the process of generating new employment opportunities within an economy, which can be driven by business growth, investments, and economic policies.
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