Article: Truck Maker Volvo To Axe Further 1,500 Jobs
World’s second largest truck manufacturer Volvo would cut a further 1,543 jobs as it plans to curtail production due to sharp fall in demand across all main markets.
Volvo in a statement declared that employees working at Construction Equipment, Volvo Trucks, Powertrain and Penta units would be affected by this decision. The company explained that sharp decline in demand for heavy vehicle in the global market has forced reduction of workforce within its Swedish operations.
The job cuts announced by the company are in addition to thousands of redundancies already undertake to come to grips with biggest ever decline in heavy-duty truck demand. While a Volvo spokesman claimed that job cuts would minimise costs, an analyst remarked that further cuts were not a huge surprise but they underlined how bad conditions in the market are.
The previous cuts were made in October 2008, which clearly indicates that there is absolutely no improvement since then. Volvo manufactures heavy-trucks under Mack, Nissan Diesel, Renault and Eicher brands and in its own name. Plummeting demand and idle capacity led the company to a pre-tax loss and the analysts feel that company will remain in red throughout 2009.
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