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Volvo takes measures to reduce cost and accelerate transformation due to COVID-19 pandemic effect.

NORDIC BUSINESS REPORT-June 17, 2020-Volvo takes measures to reduce cost and accelerate transformation due to COVID-19 pandemic effect

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Provider of transport solutions Volvo AB (STO:VOLVB) announced on Tuesday that the COVID-19 crisis is expected to have a negative effect on economic activity in many of the company's major markets in the short and medium term.

According to Volvo, it has continuously adjusted its operations to lower demand from record levels in the first half of 2019 by utilising the installed flexibility, while at the same time accelerating the transformation towards sustainable transport solutions.

Volvo plans to further reduce the white-collar workforce globally by approximately 4,100 positions during the second half of 2020, whereof around 15% are consultants. Approximately 1,250 of these positions are in Sweden.

The need for staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures, the company added.

Volvo said that the staff reductions will be carried out in different ways across the group, depending on the local business situation, country legislation and labour market practices. In some countries, including Sweden, the planned measures include notices of redundancy.

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Publication:Nordic Business Report
Date:Jun 17, 2020
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