Comment
0
Tweet
0
Print
RSS Feeds

Truck maker Volvo to slash 2,000 jobs

Friday - 10/25/2013, 7:10am  ET

STOCKHOLM (AP) -- Truck maker AB Volvo says its earnings dipped on lower sales in the third quarter and that it will slash 2,000 jobs as part of a cost-cutting program.

Volvo's net profit was 1.38 billion kronor ($217 million), down from 1.40 billion kronor in the third quarter of 2012.

The company on Friday said sales dropped by 5 percent to 64.9 billion kronor, partly due to shifts in currency values.

Volvo, which also makes buses, engines and construction equipment, said 2,000 white-collar employees and consultants will be affected by a previously announced savings program to be implemented next year.

The company expects the program to yield annual savings of 4 billion kronor by the end of 2015.

Volvo shares were down 6.5 percent at 88.15 kronor in midday trading in Stockholm.


Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.