Volvo Group reported it plans to decrease its white-collar workforce by 4,100 positions in the second half of this year. Approximately 15% of these workers are consultants.

“The corona epidemic and the global measures taken to fight it has led to a market situation impacting our industry severely,” said Martin Lundstedt, president and CEO of the Volvo Group. “The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly. In parallel, we will accelerate the competence shift needed for new technologies and business models.”

Volvo Group has already been adjusting its operations following lower demand compared to the record levels in the first half of 2019. Since that time, it has already terminated temporary and consulting contracts.

The need for staff reductions would have been higher without various governmental support packages that enabled short-term layoffs and other similar measures.

Approximately 1,250 of the 4,100 positions impacted are in Sweden.

Volvo Group is separate from the company that makes Volvo autos. That company is Volvo Cars Group.