New Swedish lay offs at Volvo Group

New Swedish lay offs at Volvo Group
Volvo Construction Equipment (CE), part of Sweden’s Volvo group, announced on Thursday that 850 more employees would be laid off in Sweden.

The new cuts come on top of the 500 redundancies the company announced earlier this autumn.

Volvo cited a worldwide slow-down in the construction equipment market, which has been worsened by the current financial crisis, as the cause of the job cuts.

“The actions we are taking now are needed in order to adjust production capacity to declining demand and to ensure that the company is coming out stronger from this downturn,” said the president of Volvo CE’s Hauler Loader Business Line, Yngve Rosén, in a statement.

Blue collar labourers make up nine out of ten of the workers to be given notice in the new round of cutbacks.

The company said that all of Volvo CE’s Swedish locations will be affected and that negotiations with unions would be started immediately.

Of the blue collar positions to be eliminated, 200 workers will be laid off in Arvika, Braås, and Eskilstuna, while 150 employees in Hallsberg will lose their jobs.

The company has not yet determined how the white collar redundancies will be distributed.