Truck maker Volvo to slash 2,000 jobs as third-quarter earnings drop

STOCKHOLM – Truck maker AB Volvo says its earnings dipped on lower sales in the third quarter and that it will slash 2,000 jobs as part of a cost-cutting program.

Volvo’s net profit was 1.38 billion kronor ($217 million), down from 1.40 billion kronor in the third quarter of 2012.

The company on Friday said sales dropped by 5 per cent to 64.9 billion kronor, partly due to shifts in currency values.

Volvo, which also makes buses, engines and construction equipment, said 2,000 white-collar employees and consultants will be affected by a previously announced savings program to be implemented next year.

The company expects the program to yield annual savings of 4 billion kronor by the end of 2015.

Volvo shares were down 6.5 per cent at 88.15 kronor in midday trading in Stockholm.