EMCC European Monitoring Centre on Change

Volvo

Company/Organisation:
Volvo

Geographic Location

Country: World
Location of affected unit(s): Sweden, France + other countries

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 98000

Employment Effects

Announcement Date: 16-06-2020
Planned Job Reductions min: 4100
Planned Job Reductions max: 4100
Type of Restructuring: Internal restructuring
Employment Effect Start: 16-06-2020

Additional Information

The Swedish truckmaker Volvo has announced a worldwide restructuring to cope with the consequences of the coronavirus pandemic that will lead to the loss of 4,100 mainly white-collar positions.  About  1,250 job cuts are planned in Sweden, while 463 other jobs will be cut in its French subsidiary Renault Trucks. According to Volvo, the pandemic and measures to curb the spread of the Covid-19 have severely impacted sales. 'The effects are expected to be lower demand going forward and we need to continue to adjust our organisation accordingly,' according to Martin Lundstedt, CEO of the Volvo Group. Volvo highhlighted that 'staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures'. Job reductions would be carried out across the group but the details would depend on 'the local business situation, country legislation and labour market practices', adds the company.

 

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