After completing the negotiations with its union, Volvo announced today the total number of job cuts. In Sweden, Volvo will layoff 2,721 employees, of which 2,367 blue collar and 354 white collars. Volvo will also reduce its personnel from abroad by 680 employees. The company also announced that 1,215 contracts with consultants have been terminated.
All affected employees will be informed during the following week and the majority will be released from work by December 31st 2008. However, they will receive their full salary during the notice period.
apart from the job cuts, Volvo has also optimized all its areas of business, including contracts for IT services, telephony and travel.
"Today is of course a very sad day at Volvo, but I feel satisfied with the fact that our cost reduction program has been successful and it has enabled us to stay with a lower number of redundancies", says Stephen Odell, President and CEO of Volvo Car Corporation.
