Due to the harsh economic situation in the European region and downsize of the market for its trucks, Volvo would fire almost 500 hired labor employees from two of its Swedish factories.
Volvo announced it would let go 380 employees at the plant in Umeå, Sweden; the first 300 employees at the end of the year and then 80 more employees in February. The plant then would shift production from three to two shifts. Moreover, nearly 100 employees at Volvo Powertrain in Skövde, located northeast of Gothenburg would leave the business. Volvo Powertrain makes the truck engines.
“This is an adaptation to market fluctuations, and we adjust our capacities accordingly. The assembly will remain at the same level as before to be able to meet Tuve plant needs of the Volvo cabins. At the same time we also need to train their own personnel for relocation to new duties,” says Mona Edström Frohm, site manager at Volvo’s cab factory in Umeå.
Volvo Group has a total of 115,000 employees in factories located in 19 countries. The Group manufactures trucks, buses and engines for industrial purposes and boats. Volvo Cars since 1998 are no longer part of the group.