Volvo Aero To Eliminate 241 Jobs

STOCKHOLM October 20, 2003; Dow Jones reported that AB Volvo said negotiations between Volvo Aero and its employee unions has been concluded and it will now issue termination notices to 134 employees and offer early retirement to a further 58.

In addition, the number of employees is expected to be reduced during the year by at least another 49 people through retirement and resignations, Volvo Aero said.

All production locations (Trollhaettan, Bromma and Malmoe in Sweden, Kongsberg in Norway and Boca Raton in the U.S.) have already reduced the number of personnel.

"The background to the terminations is well known: the crisis within the international aviation industry is impacting all companies and Volvo Aero is no exception," the company said.

In 2001, Volvo Aero in Trollhaettan served notice of termination of employment to 310 employees. On this occasion, this resulted in a personnel reduction of 303 employees, of which 168 were released and 68 were offered early retirement.

Currently, Volvo Aero in Trollhaettan has about 2,260 employees. In total, the Volvo Aero group of companies has approximately 3,500 employees.