“The Corona epidemic and the global measures taken to fight it has led to a market situation impacting our industry severely,” says Martin Lundstedt, president and CEO of the Volvo Group. “The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly. In parallel, we will accelerate the competence shift needed for new technologies and business models.”
Volvo says since mid-2019 it has adjusted its activity levels by terminating temporary and consultant contracts. The company says the need for staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures.
Staff reductions will be carried out according to national and local regulations and practices. In some countries, including Sweden, the planned measures include notices of redundancy.
“The Volvo culture will continue to be our guiding star in this work, where we will work as one team together with the unions to make this adjustment in a responsible way,” says Lundstedt. “With these changes the Volvo Group will maintain a position of strength, be adapted to the new market situation and continue to be a leader in the transformation towards sustainable transport and infrastructure solutions.”
