Volvo indicates that it will shortly reduce its workforce by at least 1,300 people. In addition, many temporary contracts are also critically examined.
A link with the current corona crisis is quickly made with the approaching dismissal round. But Volvo specifically states that this is not the reason: “The pandemic is hitting us in the short term, but we expect sales and growth to return,” said Volvo’s People Experience head, Hanna Fager. “We must therefore continue to invest in our ongoing transformation by reducing structural costs.”
The exact number of layoffs will become clear in the coming months, but it is certain that at least 1,300 Swedish employment contracts will be terminated. This would include business management, lawyers, accountants, finance and insurance jobs. In addition, the temporary contracts are also critically examined. Recently, Volvo has invested heavily in online operations, electric powertrains, autonomous technologies and new mobility solutions. Now money needs to be released to support further long-term growth, the car maker said.