Volvo will lay off round 1,300 office-based workers in Sweden because it steps up its price chopping.

Whereas the group’s effectivity drive had begun to point out outcomes, extra was wanted, CEO Jim Rowan stated in a press release on Thursday.

“Financial headwinds, elevated uncooked materials costs and elevated competitors are more likely to stay a problem to our business for a while,” Rowan stated.

About 1,100 jobs will probably be reduce at Volvo’s fundamental world working unit, Volvo Personvagnar, whereas the remaining 200 positions will probably be recognized after a assessment of the corporate’s entities throughout Sweden, the corporate stated.

The 1,300 positions equate to six % of Volvo Vehicles’ workforce in Sweden.

Rowan stated Volvo didn’t but understand how a lot it might save from the brand new measures. “We’re nonetheless working the main points by way of on that,” he informed Reuters in an interview.

The corporate stated it had issued lay off notices for 1,100 workers, whereas the remaining 200 white-collar positions could be recognized following a assessment of the enterprise throughout Sweden.

World cuts

It stated it additionally anticipated to chop jobs and scale back prices throughout its world operations within the coming months, together with its consultancies.

Rowan stated he couldn’t but specify the place these jobs could be reduce, however that focus would primarily stay on office-based positions.

“We promote in over 80 nations or so worldwide, so I feel there’s alternatives for us to turn into extra environment friendly throughout your complete community,” he informed Reuters.