The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.1 - Manufacture of motor vehicles
1,250 jobs Number of planned job losses
Announcement Date
16 June 2020
Employment effect (start)
Foreseen end date
Description
AB Volvo, a company that manufactures buses and trucks, has announced that it will dismiss up to 4,100 white-collar workers globally. In Sweden, up to 1,250 employees and consultants risk losing their jobs. The company has not yet published information regarding which locations in Sweden are affected. It indicated that "the need for staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures". According to AB Volvo, these dismissals are needed in order to adapt to the new market situation caused by the COVID-19 crisis and rapidly decreased demand. During spring 2020, the company temporarily laid-off most of its employees in Sweden.
During the economic upturn, the company increased its sales from SEK 283 billion in 2014 (approximately €28,3 billion) to SEK 432 (approximately €43,2 billion) in 2019. According to the company, this increase in sales combined with the planned restructuring will allow them to prioritise product development and focus on electrification of vehicles and development of self-driving cars. They hope that these investments will allow them to strengthen their position in the market when the COVID-19 pandemic is over.
Eurofound (2020), Volvo, Internal restructuring in Sweden, factsheet number 100918, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100918.
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