New staff cuts from Volvo Trucks
David Landes · 30 Sep 2008, 10:22
Published: 30 Sep 2008 10:22 GMT+02:00
“The planned reductions are not only being undertaken to rebalance capacity, but also to increase efficiency in production and to compensate for the higher raw material prices that we are now experiencing,” said Staffan Jufors, President and CEO of Volvo Truck Corporation, in a statement.
In addition, 400 temporary night shift workers at Volvo’s plant in Ghent, Belgium will be let go at the end of December.
Volvo Trucks said it would now enter into negotiations with unions about implementing the proposed cutbacks.
In explaining the reason for the drop in demand in the European truck market, Volvo cited the recent financial uncertainty and the corresponding tight credit markets. Not only have customers had a harder time securing financing for new trucks, but many are delaying the purchase of replacement vehicles altogether.