Volvo Trucks said it plans to lay off 734 employees at its New River Valley assembly plant in Virginia. The layoffs will take place over a three-week period in February and will impact production workers.
“We regret having to take this action, but we operate in a cyclical market, and we have to adapt to market demand,” Volvo Spokesman John Mies said. “Highway customers, who drove much of the recent market growth, have largely accomplished the expansion and renewal of their fleets, so demand from that segment, in particular, is softening.
“The U.S. economy also is navigating through a soft interval caused by high inventory levels, which has decreased manufacturing and freight levels,” Mies continued.
Earlier this year, Volvo Trucks announced plans to expand the New River Valley assembly plant with a $38 million investment to add a Customer Experience Center and to improve safety, quality and efficiency at the plant.