Volvo to Cut 4,400 Jobs

February 6, 2014

Volvo AB will cut 4,400 administrative jobs to meet a cost savings goal for 2015, according to Bloomberg, which is more than double its original plan to cut 2,000 jobs. The company expects limited demand growth in the truck market in 2014.

Reorganization will cost the company 5 billion kronor ($766 million) and Volvo estimates an annual savings of 4 billion kronor ($616.4 million) by 2015.

Volvo’s fourth-quarter earnings before interest and taxes dropped 17 percent from the same period in 2012, while revenue rose 8.2 percent, the report says.

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Source: Bloomberg