The cut represents 10 percent of Scania's global workforce and followed a 41 percent drop in vehicle deliveries in the first half of 2020, the company said.
Headquartered in Sweden, Scania also has production facilities in the Netherlands, France, Brazil and Thailand.
Like many international companies, Scania has been hit hard as the Covid-19 pandemic has sent shockwaves through the world economy.
“Looking ahead, the demand situation remains uncertain,” Scania's chief executive Henrik Henriksson said in a statement. “It will take a long time before demand returns to pre-crisis levels,” he added.
That means “we now face the tough measure of reducing the organisation by around 5,000 employees globally,” said Henriksson.
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During the height of the lockdowns in Europe, Scania said it completely shut down production due to shortages of components and disruptions in its supply chain.
Net sales in the second quarter of 2020 fell by 38 percent to 25.4 billion Swedish kronor ($2.9 billion or 2.5 billion euro), and the company reported a net loss of 544 million kronor.