Stockholm: Volvo Car Company announced that it will lay off 1,000 employees by the end of this year to help implement its saving plan of 1.5 billion Swedish kronor ($238 million).
"We have to adapt the company to the reality. We have done it with our workshops and now we have to do it with our offices," Hakan Samuelsson, CEO and president of Volvo Car, was quoted as saying at an interview by the Swedish Television SVT.
Sameulsson would not make any comments on the actual effects of the job reduction on the company but he said those strategically important models would not be affected, reported Xinhua.
"We don't see it as dramatic and rather we are just trying to balance our resources and make most of what we have," Magnus Sundemo, a Swedish engineer was quoted as saying by the Swedish daily Dagens Nyheter.
In the summer of 2012 Volvo Car let go about 800 employees working in the factories and in November last year the company was working on a comprehensive cost saving package plan, in which further job reduction was included as development of new models slowed down.
At the beginning of 2013, Volvo Car's sales fell by 16.8 percent in the European market in January.
First Published: Thursday, February 21, 2013, 13:27