Volvo announced Wednesday it will slash more than 13 percent of its workforce, or about 3,300 jobs, because of falling global demand.
The 3,300 cuts include 2,000 blue-collar positions and 700 white-collar jobs in Sweden, reports the AP and USA Today. Six-hundred jobs would be cut abroad and about 700 consultant contracts would end.
"These are difficult times for the car industry in general, including Volvo,” said Volvo president and CEO Stephen Odell. “These actions are necessary to create a new and sustainable Volvo Car Corporation — a company with more focused operations and structure.”
"The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected.”
Last month, Volvo said it would cut about 900 blue-collar employees, but "given the turbulence in the world economy over the last few weeks, however, it is clear that further costs saving actions are necessary for the company to manage the difficult market situation."