Volvo Announces Layoffs
November 30, 1998
Dec. 1 – Despite a good year Volvo plans to cut 5,300 jobs worldwide, including 1,000 in North America and 1,000 in its truck division.
According to published reports, the cutbacks are jobs that are no longer needed. For instance, truck ordering is now highly automated. Most of the job cuts should be completed by mid-1999. They will represent savings of more than $366 million, according to Volvo.
The cutbacks are not in response to poor sales. In fact, Volvo is having a good year, especially in the truck division, which increased sales by 26% through the first nine months of the year.