Volvo is laying off approximately 1,300 office-based employees in Sweden as it seeks to increase cost-cutting measures.

The job cuts represent around six percent of the car maker’s workforce in the country. 

CEO Jim Rowan said the move comes as it strives to counteract the impact of “economic headwinds, increased raw material prices, and increased competition.”

Read More: Lyft to cut 1,000 jobs after CEO change

Rowan added the group did not know how much it would save from the latest measures. 

“We’re still working the details through on that,” he told Reuters.

The company has issued redundancy notices to 1,100 employees and plans to identify the remaining 200 white-collar positions for a reduction following a review of the business in Sweden. 

Volvo Cars also expect to cut jobs and reduce costs across its global operations in the coming months, including its consultancies

Rowan said that he could not specify where those jobs would be cut but that the focus would primarily remain on office-based positions. 

Need Career Advice? Get employment skills advice at all levels of your career

He said: “We sell in over 80 countries or so worldwide, so I think there’s opportunities for us to become more efficient across the entire network.”

The announcement comes after an earlier efficiency drive at Volvo Cars began to show results. 

However, Rowan indicated that more action was needed due to the ongoing challenges faced by the automotive industry

The latest round of cost-cutting measures follows similar moves by other car makers, who have also sought to reduce their workforces and lower costs in the face of economic uncertainty and market pressures.

Follow us on YouTubeTwitterLinkedIn, and Facebook.