Blaming a continuing downturn in the freight industry, Volvo Trucks North America Inc. said it will cut 300 hourly and salaried positions at its plant in New River Valley, Va., effective April 30.
It is the second round of layoffs at the plant. About 300 hourly and salaried jobs were cut in February. Volvo employs about 1,700 people at the New River Valley plant.
"We regret that these layoffs are necessary and the impact this will have on our Volvo Trucks employees, families and community," said Karl-Erling Trogen, interim president and CEO of Volvo Trucks North America.
Volvo this year shifted its production capacity to manufacture more daycabs, which require less labor hours to produce than sleeper cabs, of which there are too many in the market at this point. However, it became evident to Trogen that more cuts were necessary.
"The sharp decline in the trucking industry has been much worse than anyone expected, and unfortunately over the last several weeks we have experienced a further unforeseeable deterioration in the order board," Trogen said.