Company management said this step is “very important” for creating a structure that is a more effective and stable company.
The Swedish Volvo Car AB company will reduce almost 7% of global labor to reduce costs and protect revenue against low demand background for cars. On Monday, May 26, the Bloomberg reports.
The company noted that the reduction would affect nearly three thousand jobs, including 1000 consultants. About 43,800 people work at Volvo, more than half of them in Sweden.
The car manufacturer will spend 1.5 billion Swedish crowns (140 million US dollars) in repairing 1.5 billion, which will affect the company’s results in the second quarter, Bloomberg wrote.
The latest abbreviations will affect 1,200 employees in Sweden. About 1000 people are now working as consultants, most of them in Sweden.
According to Fredrick Hanson’s financial director, this step is “critical” to create a structure that is a more effective and stable company.
The material states that the chief executive director of Hakan Samuelson is promoting a large -scale program to increase efficiency worth 18 billion Swedish crowns after Volvo announced the collapse of the operating profit in the first quarter of 60%. The steps announced last month were designed to stabilize the work of the automaker, fighting the growing trading barriers and uneven demand for electric cars.
Earlier, German automaker Volkswagen said he would not close a single factory, but would conduct a significant deduction. Such plans were explained by low car sales in Europe.
Earlier, the American Ford said he plans to reduce four thousand jobs in Europe until 2027 due to significant losses in recent years.
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Source: korrespondent
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