Volvo Group (VOLV-B.ST) said it will cut about 4,100 jobs during the second half of 2020 as it looks to combat the negative impact that the coronavirus is expected to have on several major markets within its business units.

The company said the cuts would affect its “white-collar workforce globally” as it anticipates negative effects on economic activity in the short- and medium-term from COVID-19.

“The Corona epidemic and the global measures taken to fight it has led to a market situation impacting our industry severely,” Martin Lundstedt, president and CEO of the Volvo Group, said in a statement.

“The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly. In parallel, we will accelerate the competence shift needed for new technologies and business models,” he added.

The company’s decision to further whittle down its workforce will include 1,250 positions in Sweden, where Volvo is headquartered. Around 15% of the cuts will come from its consultants, with some cuts being made based on redundancy.

More positions would have been cut by the auto and construction equipment maker had support packages not been provided by various governmental entities, Volvo said.

“With these changes the Volvo Group will maintain a position of strength, be adapted to the new market situation and continue to be a leader in the transformation towards sustainable transport and infrastructure solutions,” Lundstedt said.

Volvo stock was trading at $145.35 per share at market closes on Tuesday, up $8.85 from 6.48%.

Volvo says the coronavirus pandemic has made it even more important to cut costs
Volvo says the coronavirus pandemic has made it even more important to cut costs TT NEWS AGENCY / Jonas EKSTROMER
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