Göteborg, Sweden – Volvo has announced another round of job cuts that will affect some 4,000 employees worldwide, 2,700 of them in Sweden. The announcements follow job cuts of 2,000 employees in June 2008. The company blamed a rapidly deteriorating market situation in the global car industry.
The cuts will affect 2,000 “blue-collar” workers and 700 “white-collar” workers in Sweden; outside the country, an additional 600 employees will be laid off, and some 700 contracts with consultants will be terminated. When combined with the previous announcement, 6,000 Volvo workers will be laid off worldwide, including 1,200 consultants.
“These are difficult times for the car industry in general, including Volvo,” said Stephen Odell, Volvo Car Corporation president and CEO. “These actions are necessary to create a new and sustainable Volvo Car Corporation, a company with more focused operations and structure. The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected.”