Volvo axes more jobs

The company said in February it had experienced a 29% drop in sales for Volvo Construction Equipment in the December quarter, which dragged down results for calendar 2009 and prompted it to reduce production output and cut 3400 jobs.In a bid to adjust to an ongoing slump in demand for heavy equipment, Volvo is planning to reduce staff numbers by a further 1543.In this recent announcement, the Trucks and Powertrain divisions are set to take the biggest hit, with reductions of 655 staff each.Volvo Construction Equipment is laying off 125 administrative personnel at the plants in Eskilstuna, Hallsberg and BraÃ¥s. In addition, 100 contracted consultants will leave the company.Volvo Penta’s downsizing will affect 108 employees.“We are conducting ongoing discussions with the unions regarding shortening of the work week,” said Stefan Johnsson, senior vice-president responsible for human resources within Volvo’s Group Executive Management.

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