Truck maker Volvo AB is cutting 1,000 jobs in its Powertrain unit, including 100 at its Hagerstown, Md. powertrain plant, according to widely published reports Tuesday.
The other 900 job cuts are reportedly in Sweden.
The action comes just weeks after Volvo reported that its basic and diluted earnings per share fell by 36 percent in the third quarter.
"After a first and second quarter with record sales and record income, sales growth decelerated much more rapidly than expected during the third quarter, as visible in the reported earnings," said CEO Leif Johansson when third-quarter financials were released. "The downturn in the economy has been significantly exacerbated by the global financial crisis. The important European market has declined significantly, while North America and Japan continue to show weak demand. In addition, we are seeing indications that the economic climate is also weakening in other parts of the world.
"Because of the deceleration being so rapid, we haven't been able to reduce our costs at the same pace, but currently hard work is being performed around the Group in order to adjust operations to the present market situation and to counter the effects of increases in the cost of materials."
The Volvo group previously announced layoffs of 1,400 workers at truck plants in Belgium and Sweden, according to the Associated Press.
In August, Volvo company Mack Trucks announced a major restructuring plan, which included moving its headquarters to North Carolina
The other 900 job cuts are reportedly in Sweden.
The action comes just weeks after Volvo reported that its basic and diluted earnings per share fell by 36 percent in the third quarter.
"After a first and second quarter with record sales and record income, sales growth decelerated much more rapidly than expected during the third quarter, as visible in the reported earnings," said CEO Leif Johansson when third-quarter financials were released. "The downturn in the economy has been significantly exacerbated by the global financial crisis. The important European market has declined significantly, while North America and Japan continue to show weak demand. In addition, we are seeing indications that the economic climate is also weakening in other parts of the world.
"Because of the deceleration being so rapid, we haven't been able to reduce our costs at the same pace, but currently hard work is being performed around the Group in order to adjust operations to the present market situation and to counter the effects of increases in the cost of materials."
The Volvo group previously announced layoffs of 1,400 workers at truck plants in Belgium and Sweden, according to the Associated Press.
In August, Volvo company Mack Trucks announced a major restructuring plan, which included moving its headquarters to North Carolina
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