Volvo AB Announces Efficiency Program Encompassing Reduction of White Collar Employees and Consultants

Tuesday, 24 Sep 2013 07:00am EDT 

Volvo AB announced that the Company has decided to combine a number of actions into a Group-wide efficiency program. The program encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system. The identified actions cover a number of operations and areas, whereof a majority lies within the truck business area. The actions will be announced continuously as they are implemented. It is estimated that the program will entail restructuring costs totaling approximately SEK 5 billion, whereof approximately SEK 0.5 billion is expected to have no impact on cash flow. The majority of the restructuring charges are expected to impact operating income during 2014. Savings are expected to amount to approximately SEK 4 billion annually, and will generate results gradually in 2014, with full effect achieved by the end of 2015. 

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