Volvo to lay off 1,300 employees to reduce ‘structural costs’

All the specifics will be determined in the coming months
by Leandre Grecia | Apr 29, 2020
PHOTO: Volvo
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There have been multiple shutdowns and suspensions of operations across the globe since the COVID-19 pandemic took over, and inevitably, countless employees—including those from the automotive industry—have lost their jobs in the wake of it all.

Volvo is one carmaker that has announced it will lay off a huge chunk of its workforce—a total of 1,300 workers will be retrenched, to be exact. And while this notice comes right in the midst of the coronavirus outbreak, the Swedish carmaker says that this downsizing is also part of its long-term plans of reducing structural costs—the ongoing crisis has only made this measure all the more pertinent.

The company’s statement reads: “Volvo Cars is today announcing plans to accelerate its transformation to effectively position the company for long-term growth. As a result, it is giving notice for a reduction of 1,300 white-collar positions in its Swedish operations, plus a continued review and reduction of consultancy contracts.”

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Volvo has clarified that it will negotiate further with its unions in the coming months to determine the exact nature and number of job reductions. Regardless, its manufacturing operations will remain unaffected by this move.

“The coronavirus pandemic is affecting us in the short term, but we expect volumes and growth to return,” says Volvo head of people experience Hanna Fager. “So we need to continue investing in our ongoing transformation and new business areas, by reducing structural costs.”

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For more of our stories on the ongoing crisis, click here. For the latest news and updates on COVID-19, check out reportr.world/covid-19.

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PHOTO: Volvo
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