Volvo layoffs in Europe

Volvo says the company is taking measures to downsize capacity in its European production system to meet the declining demand for trucks in the European market. As a consequence, the company say they will initiate negotiations with the unions regarding staffing level cutbacks of approximately 1,400 employees at the company’s plants in Ghent in Belgium, and Gothenburg and Umeå in Sweden. A cost-reduction plan will also be implemented to meet the lower sales levels and increasing raw material cost.