AB Volvo is to cut more jobs after announcing disappointing financial results for the fourth quarter.
The trucks/industrials company will increase job cuts to 4,400, more than twice previous plans (an announced reduction of 2,000 consultants and employees). The jobs will go in 2014, the company said.
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Earlier this week the company admitted that during 2013, extra costs associated with product renewal put pressure on profitability.
Volvo said that while 2013 was very for new truck product and launch expenditures, but also suggested that it would see the benefits in 2014. It has also just reported an uptick in new orders from North America.
In the fourth quarter, the group’s net sales rose 8% year-on-year, and amounted to SEK 76.6 billion with an operating margin of 4.0% adjusted for restructuring charges and the write-down of Volvo Rents. That operating margin is well below the company’s main rivals and Volvo has pledged to raise it.
“The fourth quarter for the Volvo Group was characterised by a high activity level, with a number of product launches. We have entered into 2014 with a new product portfolio that will strengthen the group’s competitiveness,” said Olof Persson, President and CEO.
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