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Volvo Group to cut 4,100 white-collar jobs in response to financial issues due to coronavirus

“The COVID-19 crisis is expected to have a negative effect on economic activity in many of the Volvo Group’s major markets," the company said in a news release.

Volvo Group announced last Tuesday plans to cut jobs in response to financial issues due to COVID-19.

The truck maker is expected to trim its Triad workforce by 450 jobs in the second half of 2020.

“The COVID-19 crisis is expected to have a negative effect on economic activity in many of the Volvo Group’s major markets in the short and medium term,” the company said in a news release. “Volvo has continuously adjusted its operations to lower demand from record levels in the first half of 2019 by utilizing the installed flexibility, while at the same time accelerating the transformation towards sustainable transport solutions.”

The company said the coronavirus and the global measures taken to fight it has led to a market situation impacting the auto industry.

“The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly,” Volvo said. “In parallel, we will accelerate the competence shift needed for new technologies and business models,” said Martin Lundstedt, president and CEO of the Volvo Group.”

The company said it adjusted its activity levels by using the installed flexibility, terminating temporary and consultant contracts. During the second half of this year, the group plans to further decrease about 4,100 white-collar jobs where around 15% of those jobs consist of consultants.

Volvo Group said about 1,250 of the jobs are in Sweden.

The company said the need to reduce staff would have been higher without various governmental support packages enabling short-term layoffs and other similar measures.

“The staff reductions will be carried in different ways across the group, depending on the local business situation, country legislation and labor market practices. In some countries, including Sweden, the planned measures include notices of redundancy,” said Volvo Group.

“The Volvo culture will continue to be our guiding star in this work, where we will work as one team together with the unions to make this adjustment in a responsible way,” said Martin Lundstedt. “With these changes, the Volvo Group will maintain a position of strength, be adapted to the new market situation, and continue to be a leader in the transformation towards sustainable transport and infrastructure solutions.”

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