“Volvo Cars to Lay Off 1,300 Employees in Sweden as Part of Cost-Cutting Measures”

The car manufacturer is cutting costs and laying off 1,300 employees in Sweden.

The company is dismissing 1,100 employees in Volvo Personvognar AB. A further 200 will lose their jobs after a review, the company writes in one press release.

The cut corresponds to six percent of the company’s employees, and only applies in Sweden. Employees within the company’s car production keep their jobs. The cuts will be made in the administration.

– Must do more

CEO of the company Jim Rowan says that the cost cuts the company initiated last year are beginning to bear fruit, but that “it is clear that the company needs to do more”.

– Economic headwinds, increased raw material prices and increased competition will probably remain a challenge for our industry for a while, he says.

The company will also cut costs in the use of consultants and other external services, it is stated.

In the first quarter of this year, Volvo Cars had 43,400 full-time employees, and around half were employed in Sweden, writes Today’s Industry.

In the first quarter, the company had a profit before tax of SEK 5.3 billion. A deterioration from 5.7 billion in the same quarter of the previous year, the company’s data shows quarterly report.

Turnover came in at 95 billion Swedish kroner, up from 74 billion.