Volvo Car Corporation announced on Wednesday it would cut about 1,000 jobs and slash $237 million in costs by the end of this year.
The Swedish automaker wants to reverse recent losses caused by weak sales in Europe. Volvo CEO Hakan Samuelsson told Swedish public television SVT that 1,000 consultants and white-collar workers would need to leave by the end of the year as part of a cost-savings package. Volvo spokesman Per-Ake Froberg confirmed the report, adding that about 750 of the cuts would affect consultants in Sweden.
“We see that we need to continue to lower the costs during 2013 due to the weak demand in Europe, and we estimate that we’ll need to cut around 1.5 billion kronor in order to reach a break-even result,” Froberg said.
Earlier this year, Volvo indicated that it would need to cut more than 1 billion kronor to reverse losses after its sales fell 6 percent in 2012 to 422,000 cars world-wide.
“One has to adjust to reality. We’ve done that on the blue-collar side, now we have to do it on the white-collar side also,” Volvo CEO Hakan Samuelsson was quoted as saying in the SVT television interview. Volvo last year cut about 1,100 jobs, mainly agency and factory workers.