Olof Persson, the CEO and president of Volvo Group. Photo: Björn Larsson Rosvall

Volvo workers fear for jobs as truck maker announces cuts

"Biggest restructuring program in the history of Volvo"
4:56 min

The Swedish truck and bus manufacturer, Volvo Group, will cut 4,400 jobs, according to a press release the company issued on Thursday.

The company describes the cuts as a "structural reduction of white-collar employees" and plans to carry out most of these cuts within the year.

As early as October of last year, the company had announced they would be shrinking their workforce by 2,000 consultants and employees, but now, this number has expanded to affect about 4 percent of the company's entire workforce, according to news agency TT.

As of the beginning of the year, Volvo had over 95,500 permanent employees around the world.

The cuts are part of the company's program to be more efficient in how it uses its resources, and the announcement comes with Volvo's fourth-quarter report, showing a that net profit had slid from roughly SEK 870 million to SEK 550 million the year before. This drop was mainly because the company had to spend a significant sum of money to update its trucks, reports news agency AP.

Urban Spännar, the chair of the Gothenburg branch of the Unionen labor union at Volvo Group tells news agency TT that the announcement comes as no surprise and says the first will probably go after summer.

Sweden is one of the countries that will be affected heavily by the cuts, according to Claes Aronsson from Swedish Radio News' economy desk.

"It's really sad. You're living in an insecure bubble all the time," Madelene Berggren works for Volvo as a consultant and tells Swedish Radio P4 Göteborg.

However, she adds, "Obviously, you have to keep up with your competitors - I don't see anything strange about that. It's a publicly traded company, they need their money."

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