Volvo, hit with a loss and a fading US market, to cut 2,000 jobs

0 Comments | AFP, June, 2008

STOCKHOLM (AFP) — Swedish automaker Volvo Cars, hit with a first quarter loss and a faltering US market, said Wednesday it would slash 2,000 posts or 8.0 percent of its global workforce.

"As part of an extensive cost reduction programme, Volvo is planning to reduce its workforce by 1,400 white collar (consultants included) and 600 blue collar members of its workforce," the company, a unit of struggling US auto giant Ford, announced in a statement.

"This is an unfortunate but necessary action if we are to achieve a better financial position," Volvo Cars president Fredrik Arp said.

"We must tackle the difficult market conditions, most of all in the US market."

The measure will see the elimination of 1,200 jobs in Sweden and 300 abroad. In addition, the...