Volvo to cut 5300 jobs
GOTHENBURG, Sweden — Car and truck-maker Volvo AB plans to cut 5300 jobs worldwide, including 1000 layoffs across its commercial truck operations, beginning in mid-1999.
The decision is expected to lower Volvo’s annual costs by about $370 million US. Volvo CEO Leif Johansson said the company’s “earnings capacity is insufficient and we must now take actions to ensures Volvo’s long-term competitiveness.”
Roughly 3100 of those laid off will be managers and the remainder hourly wage-earners. A total of 2600 jobs are in Sweden, 1100 elsewhere in Europe, 1000 in North America, and 600 from operations in the rest of the world.
The total represents 7.3% of Volvo’s workforce. Volvo officials say the layoffs will apply to many positions made redundant by automation and other technologies.
Volvo has taken several steps to streamline in recent years, including the closure of its car-assembly plant in Halifax and the sale of its rear-axle plant in Lindesberg, Sweden, to Meritor Automotive.
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