Geely's Volvo Cars is to axe 1,300 'white collar' jobs.

The automaker announced "plans to accelerate its transformation to effectively position the company for long term growth" which will see it sack 1,300 white collar positions in its Swedish operations, plus "a continued review and reduction of consultancy contracts".

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Volvo said "the exact nature and amount of job reductions will be decided over the coming months in negotiations with the unions".

Manufacturing operations will not be affected.

"Volvo Cars aims to lead the transformation in areas such as online business, electrification, autonomous drive and new mobility models. While the company has invested and grown substantially in these areas, it now aims to reduce in non-focus areas to support further growth longer term," the automaker said in a statement.

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"The company also aims to become more agile and reduce hierarchies that are slowing down decision making and execution."

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Volvo said the cuts were part of the ongoing realignment of operations in line with long term ambitions and need for structural cost reduction but the coronavirus pandemic had "increased the pertinence of the measures announced".

"The coronavirus pandemic is affecting us in the short term but we expect volume and growth to return," said Hanna Fager, head of what Volvo calls 'People Experience' (HR).

"So we need to continue investing in our ongoing transformation and new business areas, by reducing structural costs."

The were further "multi billion SEK investment plans" in its Swedish operations to "adapt its industrial footprint to new technologies, securing jobs in the long term".