Volvo Cars to lay off 1,500 employees
STOCKHOLM, Jun 25, 2008 (Xinhua via COMTEX) -- Swedish Volvo Cars said Wednesday that it was going to cut 1,500 jobs following a big first-quarter loss on declining sales.
The 1,500 jobs include 1,200 workers in Sweden who had already received layoff notices and 300 positions overseas. Meanwhile, contracts with about 500 consultants will also be cancelled, according to an announcement from Volvo headquarters in the Swedish second largest city Gothenburg.
The reduction in personnel is part of a sweeping program to reduce costs by 4 billion kronor (about 661 million U.S. dollars).
The work to overhaul the organization will continue through the fall and is expected to be completed by the end of the year.
"We have to meet these worsening market conditions, primarily in the American market. The market's contribution to covering Volvo Cars' total costs is, at the present time, too little," Volvo Cars CEO Fredrik Arp said in a statement.
The decision is a "difficult but necessary measure to reach a better financial position," he added.
Volvo Cars, owned by U.S.-based Ford Motors, suffered a loss of 900 million kronor (about 151 million dollars) in the first financial quarter of the year.
The 1,500 jobs include 1,200 workers in Sweden who had already received layoff notices and 300 positions overseas. Meanwhile, contracts with about 500 consultants will also be cancelled, according to an announcement from Volvo headquarters in the Swedish second largest city Gothenburg.
The reduction in personnel is part of a sweeping program to reduce costs by 4 billion kronor (about 661 million U.S. dollars).
The work to overhaul the organization will continue through the fall and is expected to be completed by the end of the year.
"We have to meet these worsening market conditions, primarily in the American market. The market's contribution to covering Volvo Cars' total costs is, at the present time, too little," Volvo Cars CEO Fredrik Arp said in a statement.
The decision is a "difficult but necessary measure to reach a better financial position," he added.
Volvo Cars, owned by U.S.-based Ford Motors, suffered a loss of 900 million kronor (about 151 million dollars) in the first financial quarter of the year.
Labels: layoffs, Sweden, Volvo Cars
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