Volvo's truck unit to cut 4,100 jobs as pandemic weighs

  • Volvo said around 15% of the expected reductions were consultants, adding that about 1,250 positions were expected to be cut in Sweden.
AB Volvo plans to cut its white-collar workforce by around 4,100 positions
AB Volvo plans to cut its white-collar workforce by around 4,100 positions

Truck- and construction equipment maker AB Volvo 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 earlier this month flagging it was planning major job reductions.

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"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 organisation accordingly."

Also Read : Nikola Corp - How a $26-billion truck company with zero revenue just surged 103%

Volvo said around 15% of the expected reductions were consultants, adding that about 1,250 positions were expected to be cut in Sweden.

Also Read : After Nikola's surge, Tesla to go 'all out' for mass production of Semi trucks

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.

First Published Date: 17 Jun 2020, 09:00 AM IST
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