Volvo Car to Cut 2,500 Jobs as Part of Plan to Cut Costs Further

What BBN said about it

1. 

   Hank Ledger · Lead AnchorVolvo Cars says it will cut about twenty-five hundred jobs worldwide, and about two thousand of them are in Sweden.

2. 

   Chip Darnell · U.S. News AnchorOkay, I just woke up. Is this the car company that makes the sturdy wagons my neighbor won't stop talking about?

3. 

   Hank Ledger · Lead AnchorThat's the one. The Reuters report says it swung to an adjusted operating loss of three point seven billion Swedish crowns in the third quarter.

4. 

   Chip Darnell · U.S. News AnchorAnd a year ago?

5. 

   Hank Ledger · Lead AnchorA profit of five point eight billion crowns. Revenue was sixty-six point nine billion crowns, down nearly twenty-three percent from last year.

6. 

   Chip Darnell · U.S. News AnchorThat's a big swing. What does Volvo say went wrong?

7. 

   Hank Ledger · Lead AnchorIt points to a slow production ramp-up for the new EX60 electric SUV, plus weak demand in China and the United States.

8. 

   Hank Ledger · Lead AnchorIn China, revenue fell by almost fifty percent from a year earlier, according to Investing. com.

9. 

   Chip Darnell · U.S. News AnchorHalf. That's a lot of empty driveways.

10. 

    Hank Ledger · Lead AnchorThis isn't the first round. Volvo announced about three thousand job cuts in May twenty twenty-five.

11. 

    Chip Darnell · U.S. News AnchorSo the turnaround plan had cuts in it already?

12. 

    Hank Ledger · Lead AnchorIt did. And earlier this month Volvo scrapped its guidance for full-year sales volume and cash flow.

13. 

    Chip Darnell · U.S. News AnchorWho does this hit hardest?

14. 

    Hank Ledger · Lead AnchorThe workers, and Sweden most of all.

15. 

    Hank Ledger · Lead AnchorThe company also plans five billion crowns in additional cuts to indirect spending and variable costs by the end of next year.

16. 

    Chip Darnell · U.S. News AnchorWhat does the boss say?

17. 

    Hank Ledger · Lead AnchorCEO Hakan Samuelsson called the quarter very disappointing. He said, quote, our ongoing turnaround plan therefore needs a decisive reinforcement.

18. 

    Chip Darnell · U.S. News AnchorReinforcement sounds good to me. That's like adding a second bolt.

19. 

    Hank Ledger · Lead AnchorThe reinforcement is the cuts. The plan being reinforced also had cuts.

20. 

    Chip Darnell · U.S. News AnchorOh. So it's the plan again, but more.

21. 

    Hank Ledger · Lead AnchorVolvo is majority-owned by China's Zhejiang Geely Holding Group, and I bet a third round is not off the table.

22. 

    Chip Darnell · U.S. News AnchorDoes the plan come with a plan?

23. 

    Hank Ledger · Lead AnchorVerdict: second round, same plan, a decisive five out of five.

24. 

    Hank Ledger · Lead AnchorI'd expect the next reinforcement announcement in the spring, with a new font.