Volvo To Cut 350 in Sweden

Posted on November 19, 2012

According to European press reports, Volvo's construction equipment operations (VCE) said it will give notice to 350 permanent staff in Sweden because of falling machine demand. "We have earlier laid off contractors and temporary employees and now we, unfortunately, need to reduce the permanent staff," VCE spokesman Magnus Baarnhielm said.

Sales at VCE, whose products include wheel loaders, crawler excavators and pavers, fell 9% to $2.0 billion in the third quarter. Volvo said in its quarterly report it expected further pressure on VCE's profit due to a weak global economy, high inventories in the sector and increased price competition.