FILE PHOTO: A long exposure picture shows cars of Swedish automobile manufacturer Volvo displayed in front of a showroom of Stierli Automobile AG company in St. Erhard, Switzerland April 11, 2019. REUTERS/Arnd Wiegmann
STOCKHOLM (Reuters) – Swedish carmaker Volvo, which is owned by China’s Geely, is cutting several hundred jobs, Swedish radio reported on Friday citing sources.
The carmaker, whose number of employees has more than doubled over the past decade to about 43,000, confirmed it was reviewing staff and other costs to ensure its business had the “right skills”.
“As a growing company Volvo Cars is constantly reviewing its cost base. This becomes even more important in light of the headwinds the industry is facing and Volvo Cars is now increasing its focus on costs related to staffing and bought services,” the company said in an emailed statement.
The jobs primarily affected were those of consultants and staff involved in factory production will not be affected, a Volvo spokesman said.
He declined to specify the number of job cuts and savings expected from the layoffs.
Volvo’s fortunes have come under renewed threat with the car sector facing one of its most challenging periods due to trade conflicts, hefty bills to develop electric and driverless cars, and an overall downturn in the industry.
The company, which has put its listing plans on ice due to the tariff wars and auto stock downturn, has reported lower first-quarter profit and warned that margins will remain under pressure this year.
Reporting by Esha Vaish in Stockholm, editing by Deepa Babington