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Swedish jobs slashed as Volvo and Electrolux cut costs

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Swedish jobs slashed as Volvo and Electrolux cut costs

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The world second largest lorry maker Volvo is to cut 2,000 jobs. It is all part of a plan announced in September which is designed to generate annual savings equivalent to 4.5 billion euros.

At the same time it posted a sharp drop in third-quarter profit, hit by the strength of the Swedish currency and the costs of its biggest ever introduction of new models.

Volvo is Sweden’s largest private-sector employer, and another of the country’s big companies – Electrolux – also announced it is cutting 2,000 people from its payrolls.

The home appliances maker, whose brands include Frigidaire, AEG and Zanussi, also launched a new round of cost cuts and will review its production in Italy.

It is reacting to tough conditions in its main market, Europe, after posting a bigger than expected fall in third-quarter earnings.