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• Volvo said its plant in Kaluga, near Moscow, would continue in idle mode, however, it has not decided to leave the country entirely
Swedish truck maker AB Volvo on Tuesday said it had begun laying off some of its Russian workforces and is scaling down its operations.
Although the company has suspended all its sales, service and production in Russia, which accounted for about 3% of its net sales last year after the country invaded Ukraine, on Tuesday said that the group has not decided to leave the country entirely.
"In the current situation, it is not possible for us to conduct operations in Russia," a Volvo spokesperson said in an emailed statement to Reuters.
"We have therefore made the decision to adapt by scaling down our operations in the country and to start to reduce the number of staff," the spokesperson told Reuters, adding that the management in Russia is currently assessing how many workers would be affected.
He also said the manufacturing plant in Kaluga, near Moscow, which employs 600 people and can produce 15,000 vehicles per year, would continue in idle mode.
Picture Credit: AutoEvolution
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