Volvo Cars notifies 3,000 employees – 1,200 in Sweden
Volvo Cars, like many other car manufacturers, has had a very tough period. The company’s share price has collapsed by almost 24 percent this year. And recently, CEO Jim Rowan was allowed to leave on the day and came in former manager Håkan Samuelsson. Now his action is coming to gain new momentum on the company.
A total of 3,000 services will be removed. Of these, 1,000 are consultants and a total of 1,200 services affect Swedish operations.
« The action plan of SEK 18 billion includes the creation of a more adapted and efficient organization with a structurally lower cost base, which corresponds to an estimated reduction of approximately 3,000 positions, including consultants, at Volvo Cars operations around the world, » the company writes in a press release.
Volvo Cars has started Negotiations with the relevant trade unions and a notice to the Employment Service will be placed on Monday.
« These structural changes are necessary for Volvo Cars to be able to deliver on its long -term strategy and strengthen the conditions for profitable growth, » the company writes.
Volvo Cars is adhering to its ambition of full electrification, they also announce.
The reductions will strike Volvo Cars’ results for the second quarter this year. In total, the savings package will cost Volvo Cars up to SEK 1.5 billion in a one -time item, according to the company.
On the stock exchange has Volvo Cars Share price has risen by 3.3 percent during the day.
The chairman of the municipal council in Gothenburg, Jonas Atenius, S, says:
– Today’s message is a tough blow to Gothenburg. My thoughts go primarily to those who are now losing their jobs and to their families.
– Basically, Volvo Cars is a very well -managed and well -functioning company, but like everyone else depending on the situation in our world. As I said earlier, the government and the state must reactivate business policy. The industry needs support to respond to customs, trade barriers and high prices, he says.
The opposition leader in Gothenburg, The Moderates Axel Josefson, now wants to see a collection for the jobs in Gothenburg.
« Gothenburg needs to step up on business issues and now the collection is required for the jobs. We, the Moderates, are always prepared to cooperate for Gothenburg’s best. » he writes to DN.
Monday’s notice is a new hard blow to Gothenburg’s labor market and business.
Recently, Volvo Cars also announced that their now wholly owned company Novo Energy notified 150 services. About half of all, from the planned battery factory. At the same time, Heart Aerospace is moving the electricity plan factory to the United States. Zeekr has also notified 280 services.
On the plus side, however that the defense group Saab expands its operations by 600 services in Gothenburg.
It is municipal -owned Business Region Gothenburg, BRG, that coordinate the business issues. There, CEO Patrik Andersson tells DN:
– I feel strongly for all those who are now losing their job. It was in line with what we expected. We knew that Volvo Cars had to adapt their costs, but being the one who ultimately gets the message is extremely tough.
– At the same time, we must remember that these are attractive staff. Gothenburg has a strong and dynamic business community that needs competence.
The article is updated
