Volvo to Cut Jobs to Reduce Costs

Swedish truck-maker Volvo AB said it would cut some “white-collar” jobs and consultants as part of an effort to reduce costs by about $620 million annually by the end of 2015.

The moves are part of a three-year plan to cut costs and improve profitability, Volvo said in a Sept. 24 statement that did not provide details of the plans or how many jobs it would eliminate. The company will also improve production efficiencies, it said.

“We are currently combining these actions into a comprehensive program, in order to provide an improved overview of both the effects and the implementation schedule of our extensive and comprehensive strategy,” Volvo CEO Olof Persson said in the statement.

Volvo expects the changes to cost about $780 million to implement, it said.

Volvo produces the Volvo and Mack heavy-truck brands in the United States. It also makes smaller trucks, buses, marine engines and construction equipment.