The COVID-19 crisis is taking its toll on the economic activity in Volvo Group’s major markets. As a result, the company announced on June 16 that it will be laying off 4,100 white-collar positions.
The company said that 15% of these workers are consultants and 1,250 of the jobs are located in Sweden.
"The Corona epidemic and the global measures taken to fight it has led to a market situation impacting our industry severely,".said Martin Lundstedt, CEO of the Volvo Group, in a statement.
" The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly," Lundstedt added." In parallel, we will accelerate the competence shift needed for new technologies and business models," says Martin Lundstedt, President and CEO of the Volvo Group.
The company noted that the need for staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures.
"The Volvo culture will continue to be our guiding star in this work, where we will work as one team together with the unions to make this adjustment in a responsible way," said Lundstedt. "With these changes, the Volvo Group will maintain a position of strength, be adapted to the new market situation and continue to be a leader in the transformation towards sustainable transport and infrastructure solutions."
