Volvo announces mass layoffs due to lack of demand for trucks

Volvo plans to lay off hundreds of workers at a Virginia plant due to an expected decrease in the demand for trucks.

Volvo has confirmed the they plan to lay off around 700 people at the Dublin, Virginia, plant at the end of the year. Currently, about 3,300 people work at the plant.

Volvo points to an expected downturn in the North American truck market as a reason for the layoff. The company reportedly expects the North American truck market to be down 30% or 100,000 trucks in 2020, according to WHSV.

The layoffs are scheduled to begin on January 20, 2020.

John Mies of Volvo writes:

We regret having to take this action, but we operate in a cyclical market, and after two years of extremely high volumes, we have to adapt to reduced market demand.

You might recall we confirmed back in June, around the time we announced our $400 million investment in NRV, that we expected to have to lay people off around year-end.

We expect the total North American truck market to be down nearly 30 percent, or about 100,000 trucks, next year. And we expect one of Volvo’s core segments, the long-haul truck market, to represent a significant part of that reduction.

The reduction in production will unfortunately mean the layoff of about 700 people, beginning the week of January 20, 2020.

Outplacement support meetings led by the company and UAW representatives will be provided for all affected employees. We will also provide employees with information about the support available through the Virginia Employment Commission and the regional Rapid Response team.

In October, 80% of the workers at the Dublin plant were temporarily laid off due to a United Auto Workers strike.

Last month, Daimler Trucks North America announced the layoff of 900 workers at two North Carolina Freightliner plants.