• Sweden's news in English
 

Volvo axes 4,400 jobs as profits slide

Published: 06 Feb 2014 07:55 GMT+01:00
Updated: 06 Feb 2014 08:15 GMT+01:00

The planned job cuts more than double the 2,000 redundancies included in a major restructuring plan Volvo announced in September 2013, and amount to about four percent of the company's total workforce.

Volvo refused to specify how many of the staff reductions will take place Sweden, where the company has roughly 25 percent of its workers.

"There won't only be cuts in Sweden; this affects the entire company the world over, but I can't say how large a percentage will be in Sweden. Sweden will be affected, as well as other important countries for Volvo like France and Japan," Volvo spokeswoman Karin Wik told the TT news agency.

Included in the job cuts are the previously announced redundancies of 2,000 consultants and other employees.

While Volvo's fourth quarter operating income rose to 3.08 billion kronor ($471.65 million), up from 2.19 billion in 2012, the results were still well below the 3.8 billion kronor projected by analysts polled by Reuters.

"During 2013, extra costs associated with the product renewal put pressure on the Group’s profitability, and this was also the case in the fourth quarter," Volvo CEO Olof Persson said in a statement.

Sales fell by 9.0 percent from the 2012 level to 272.6 billion kronor ($41.7 billion) last year, the group said. The truck market is closely linked to economic activity..

Pre-tax profits amounted to 237 million kronor, compared to pre-tax profits of 706 million kronor for the same period in 2012.

On the bright side, however, orders were up 12 percent.

"We knew that this would be a tough quarter for Volvo. Despite the low expectations, these results are worse than expected," Hampus Engellau, an analyst with Handelsbanken bank told TT.

Engellau added that the positive developments for Volvo orders would likely send shares higher, despite profits missing the mark.

At the end of last year, the company had 95,500 people on its payroll and employed nearly 15,000 consultants.

DON'T MISS: Swedish mayor in 'epic' Van Damme tribute

TT/AFP/The Local (news@thelocal.se)

Your comments about this article

Today's headlines
Swedish swimmer smashes butterfly record
Swedish swimmer Sarah Sjöström. Photo: Maja Suslin/TT

Swedish swimmer smashes butterfly record

Swedish swimming champion Sarah Sjöström broke the women's 100m butterfly record on Sunday as China’s Sun Yang and America’s Katie Ledecky kept their 400m freestyle titles at the World Championships. READ  

Python on the loose in Malmö – again
A python in Malmö has escaped for the second time in two days. File Photo: AP Photo/The Muskegon Chronicle/Natalie Kolb

Python on the loose in Malmö – again

A 2.5-metre-long python that escaped and was found on a staircase in southern Malmö over the weekend has once again slithered away, police said on Monday. READ  

My Swedish Career
'A whole new world opened up in Sweden'
Fuad Mohamed will be working for the Swedish International Development Cooperation Agency (SIDA). Photo: Private

'A whole new world opened up in Sweden'

Like thousands of others, Somalian refugee Fuad Mohamed came to Sweden in search of a better life. A decade on, the International Relations graduate is planning to return to East Africa to work in development. READ  

Lagercrantz 'born to write Millennium sequel'
David Lagercrantz. Photo: Peter Lydén/TT

Lagercrantz 'born to write Millennium sequel'

David Lagercrantz, commissioned to write the upcoming sequel to the late Stieg Larsson's best-selling Millennium trilogy, wrote in the Dagens Nyheter newspaper on Sunday that he lived "day and night" with Larsson's characters. READ  

Calais migrants
Sweden critical of UK policy on Calais migrants
Migrants step over a fence as they escape from railway police officers in Calais. Photo: Thibault Camus AP/TT.

Sweden critical of UK policy on Calais migrants

The Swedish justice and migration minister, Morgan Johansson, has accused David Cameron of "playing politics" with the migrant crisis in Calais. READ  

Sweden’s sharks heading towards extinction
Swedish spiny dogfish stocks are not recovering. Photo: AP/TT

Sweden’s sharks heading towards extinction

According to the Swedish Species Information Centre, the Swedish shark population is severely depleted and there are no clear signs of recovery. READ  

Older Swedes 'see the benefits of immigration'
Older Swedes are more positive about immigration than their European counterparts. Photo: Stig-Åke Jönsson / TT

Older Swedes 'see the benefits of immigration'

Swedish pensioners are significantly more positive about immigration than other older people in Europe, according to a new study from the World Bank. READ  

Increase in violence in Swedish asylum centres
The surge of migrants into Europe fleeing war-torn regions has increased the pressure on the Swedish migration system. Photo: Soeren Bidstup / AFP / Scanpix Denmark

Increase in violence in Swedish asylum centres

The Swedish Migration Board (Migrationsverket) has so far this year recorded almost as many reports of threats and violence in asylum accommodation as throughout the whole of 2014, according to the Swedish newspaper Dagens Nyheter. READ  

Wet July dampens Swedes' summer spirit
Rain in Stockholm. Photo: Marcus Ericsson/TT

Wet July dampens Swedes' summer spirit

Swedes complaining about the disappointing summer were vindicated after meterologists revealed on Friday that July indeed finished wetter – but warmer – than normal. READ  

Swedes get set for new money, money, money
Christina Wejshammar of Sweden's central bank. Photo: Vilhelm Stokstad/TT

Swedes get set for new money, money, money

A new smartphone app is set to help Swedes navigate the biggest switch in bank notes the country has ever seen with only two months to go before the new cash is introduced. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
IN PICTURES: Joyful celebrations at Stockholm's Pride Parade 2015
National
Snoop Dogg's initial drug test positive say Swedish police
How did a banana help a Swedish man avoid speeding fines?
Gallery
People-watching: July 31st - August 2nd
Technology
Modern mugging: Swedish thieves use smartphone app to rob man
Blog updates

31 July

Editor’s blog, July 31st (The Local Sweden) »

"Dear readers, As the Stockholm Pride Festival kicked off this week, we spoke to the chairman of..." READ »

 

15 July

Climate Change: A New Risk Assessment (The Diplomatic Dispatch) »

"Climate change is one of the most serious threats facing the world today.   The UK is..." READ »

 
 
 
National
How a century-old Russian sub wreck got Sweden into a frenzy
Gallery
People-watching: July 29th
National
How to become a Swedish woman
National
Free bus cards for refugees in Sweden
Lifestyle
New snaps of Sweden's baby prince
National
Why are Swedes so scared of Russian submarines?
Gallery
Property of the week: Simrishamn, Skåne
Sponsored Article
Getting pregnant the Swedish way
Features
Five outrageously harsh tourist comments about Sweden
Sponsored Article
Why is Sweden still working with Russia?
Gallery
People-watching: July 24th-26th
Travel
Seven ways to beat the Swedish rain
National
Should Sweden's alcohol stores be open on weekends?
National
How to become a Swedish man
Gallery
People-watching: July 22nd
Lifestyle
How to never miss your favourite features on The Local
National
Royal husband on 'breadwinner' role
National
Stockholm to ban all cars for one day
Sponsored Article
Outsourcing drives Apreel's Europe growth
Gallery
Property of the week: Sölvesborg, Blekinge
National
Questions over who would replace Swedish PM in a crisis
Gallery
People-watching: July 17th-19th
National
Why are Swedish women joining Isis?
Travel
Ten Stockholm streets you just have to walk down
Sponsored Article
'Swedish women must demand their partners use a condom'
Sport
Did UK football parents threaten Swedish kids?
Technology
Stockholm scientists find world's oldest sperm
Gallery
People-watching: July 15th
National
Angry Swede uses bird nest as fake speed camera
National
Meatball row as Ikea changes recipe
National
Sweden's new princess in spotlight
National
Slimy slugs go on sale to raise cash for EU migrants in Sweden
National
Crown Princess Victoria turns 38
Sponsored Article
Harstena: Life in Sweden's secret archipelago
National
Is this the best marriage proposal story in Malmö's history?
Sponsored Article
'Biofuels critical for climate-friendly flights'
Sponsored Article
Gaps don't have to kill your Swedish CV
National
Why summer could be the best time to invest in a Swedish property
Gallery
Property of the week: Bollnäs, Hälsingland
National
Swedish house on sale for one krona
National
Would you give this ugly food a home?
Gallery
People-watching: July 10th-12th
Travel
Foreign hikers in Sweden set to get more help in English
National
Prince Nicolas enjoys first summer
National
Meet the amazing Swedish granny who loves theme parks
Sponsored Article
'Swedish industry needs US trade deal'
Sponsored Article
Sweden's 'incredible' chance to connect
Sponsored Article
'Today's refugees could be tomorrow's Zlatan'
Sponsored Article
Crans-Montana: International expat hub
Sponsored Article
‘I don’t feel Swedish, I feel international’
Sponsored Article
VIP Mingle at Almedalen's hottest event
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

3,259
jobs available
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se