Volvo AB, the world’s second-largest maker of heavy trucks, will cut an additional 1,543 jobs in response to falling demand from transport clients and builders.
The Gothenburg, Sweden-based company will eliminate 655 jobs at its truck division, 125 in construction, 108 at its Penta boat-engine unit and 655 at its Powertrain engine parts subsidiary, Volvo said in a statement today.
The truck firm is a separate company to Volvo cars. The car firm is owned by Ford but has suffered its own problems and has been put up for sale by its US parent.
The company is also in talks with unions about shortening the workweek, Volvo said. The company cited a “sharp decline” in the global demand for heavy vehicles as a reason for the additional job cuts.
The reductions will affect workers in Sweden, Volvo said.
Volvo’s cuts announced today add to more than 1,800 employees it has made redundant at several divisions since the start of this year. Global truck sales have slumped amid the economic recession as transporters struggle to finance fleet renewals.
In February, Volvo truck sales fell by more than half. Volvo is scheduled to release first-quarter earnings and March truck sales on April 24th.
Bloomberg