Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Volvo Cars announced its plan to dismiss 1160 employees working at the production unit of Gothenburg and 140 employees working at the production unit of Skövde. The company informed also about the dismissal of 300 consults.
Volvo Cars argues that these dismissals are connected to the ongoing shift towards a more agile organisational model. The company plans to increase its focus on online activities, fleet electrification, and self-driving cars. While the effects of the COVID-19 pandemic are not directly related to this restructuring event, the rapidly changed market environment has made the need for this shift more urgent.
A representative of trade union Unionen argued that while they support the Volvo Cars’ efforts to shift towards a new organisational model, they would have wanted the company to continue this shift without dismissals.
Updated 01/10/20
Volvo Cars will reduce staffing levels by 590 employees in Göteborg and 60 employees in Skövde. In total, 650 white-collar employers are losing their jobs, which is half as many redundancies than what was announced in April 2020. In addition, 300 consultants will also leave the company. According to the HR director, 90% are voluntary redundancies.
The company also announced that by the end of this year, they will hire approximately 100 new employees with specific set of skills needed by Volvo Cars.
Eurofound (2020), Volvo Cars, Internal restructuring in Sweden, factsheet number 100518, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/100518.