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.