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Posted: Wednesday, 08 October 2008 4:34AM
Volvo to Cut Another 3,000 Jobs
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Stockholm, Sweden (AP) -- Ford Motor Co.-owned carmaker Volvo Cars said Wednesday it will slash more than 3,000 jobs because of decreasing demand.
Citing a ``rapidly deteriorating market situation in the global car industry,'' the Goteborg-based company said it would cut around 2,000 blue-collar and 700 white-collar jobs in Sweden. Another 600 jobs would be eliminated abroad and some 700 contracts with consultants would be terminated.
Including staff reductions already announced in June, Volvo Cars said the total redundancy number now comes to around 6,000 people worldwide, of which about 1,200 are consultants.
``These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation a company with more focused operations and structure,'' said Volvo Car President and Chief Executive Stephen Odell.
``The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected,'' he said.
In September, Volvo said it expected around 900 blue-collar employees to be affected by staff cuts, but, it said, ``given the turbulence in the world economy over the last few weeks, however, it is clear that further costs saving actions are necessary for the company to manage the difficult market situation.''
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