Motor Co.’s Volvo Cars subsidiary says it will cut 6,000 jobs in response to deteriorating global economic conditions that are adversely affecting the car market.
Volvo in June announced plans to cut 2,000 of its 24,300 workers but now is adding another 4,000 as conditions worsen. Volvo’s U.S. sales in September plunged 49.8% vs. year-ago to 4,054 units, Ward’s data shows.
“The unstable economic environment has resulted in a very unpredictable economic situation, and the downturn in the global car industry is more drastic than expected,” Volvo CEO Stephen Odell says in a statement.
The cuts, which are part of a strategy to reduce expenses by $562 million, include the elimination of 4,800 employees in Sweden and overseas, as well as 1,200 consultants, the auto maker says.