Swedish truck maker, Volvo Group has announced that it will make cost cuts and cut staff over the next two years.
AAP reports that the restructuring, which will be worth 5 billion kronor ($A832 million), will focus mainly on its truck business and not on its bus, construction equipment and engine operations.
Announcing the restructuring in a statement, the company said, "The programme encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system."
According to The Wall Street Journal, Volvo employs about 115,000 people worldwide. It is expected that any job losses would mainly affect the company’s white-collar workers and contract staff.
Based in Gothenburg, Volvo has experienced a 10 per cent reduction in demand for its trucks this year. Sales went down by 4 per cent in August from a year earlier to 12,864 vehicles. In addition, the company posted a 38 per cent decline in profit in 2012.
Europe accounts for 40 per cent of the company's truck sales.