Volvo to cut 900 jobs
TT/The Local · 11 Nov 2008, 13:37
Published: 11 Nov 2008 13:37 GMT+01:00
- Volvo Cars incurs massive losses (07 Nov 08)
- Volvo to lay off 600 workers (29 Oct 08)
- Volvo trucks profits on downhill roll (24 Oct 08)
The redundancies will affect 580 workers in Skövde, 110 in Gothenburg and 210 in Köping, according to a statement from the local manager for Volvo Powertrain in Skövde.
Volvo's engine factory in Skövde will be hardest hit by the cutbacks, with 580 of a total 3,000 workers set to lose their jobs.
"We have noticed a drop in demand since the summer and have adapted by cutting back on part time workers and recruitment companies.
"Those measures mean we will have 400 fewer staff members by Christmas, but it's not enough," manager Magnus Holm told the TT news agency.
Volvo Powertrain employs a total of 6,300 people in Sweden. The Köping plant produces gearboxes, while the workers in Gothenburg are involved with purchasing, construction and product development.
"A downturn in the economy, the continuing decline in North America and global financial worries have all contributed to putting the brakes on demand," said Holm.
Volvo Group has in recent months announced a series of job cuts across its operations, with 1,400 redundancies at Volvo Trucks, 1,350 at Volvo Construction Equipment and 90 at Volvo Penta.
Ford-owned Volvo Cars has also felt the brunt of the industry slowdown, with 3,900 job losses in Sweden so far this year.