Volvo Cutting 1,000 Temporary Contract Workers in Sweden

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has announced that it will let go of 1,000 temporary contract workers and white collar employees in Sweden to save $237 million (€313 million). The announcement comes after sales fell by 2.1% in January globally and fell 14.7% in the EU.

Of the lost workers, 750 of the jobs will be consultants, and the rest of the reductions will come from voluntary cuts to permanent staff from early retirement.

"One has to adapt to reality. We have done that on the factory floor side, now we have to do it on the white-collar side,” said Volvo CEO Hakan Samuelsson.

Volvo cut 900 factory positions last year.

Volvo is hoping to nearly double sales by 2020 from 421,951 cars sold in 2012 to 800,000 sold in 2020. 

Source: Automotive News Europe