Volvo Cars Announces Layoffs of 3,000 Employees Amid Restructuring
The Swedish automaker aims to cut costs in response to rising expenses and declining electric vehicle demand.
Volvo Cars has disclosed plans to eliminate 3,000 positions as part of a restructuring initiative announced in April.
The cuts primarily target office jobs and reflect challenges the company faces, including high costs, a slowdown in electric vehicle demand, and uncertainty surrounding the impact of tariffs.
Owned predominantly by Chinese conglomerate Geely Holding, Volvo Cars initiated a cost-reduction program totaling 18 billion Swedish kronor (approximately €1.64 billion), which includes job reductions.
As of the first quarter, Volvo employed 43,500 full-time employees and an additional 3,000 from recruitment agencies.
According to company statements, the layoffs will predominantly affect its office staff in Sweden and account for around 15% of the total global workforce in office roles.
CEO Hakan Samuelsson noted that the automotive industry is experiencing significant difficulties and emphasized the need to enhance cash flow and structurally reduce costs.
Last month, Volvo Cars withdrew its financial forecasts, citing market unpredictability amid declining consumer confidence and tariffs imposed by the United States, which have created turbulence in the global automotive sector.
Recently, former President Donald Trump threatened to impose a 50% tariff on imports from the European Union, although this deadline has since been postponed to July 9 to facilitate discussions.
Samuelsson warned that consumers would ultimately bear much of the cost associated with any tariff increases, highlighting that such a steep duty could jeopardize the import of the EX30, one of Volvo's more affordable electric vehicles produced in Belgium.
The cuts primarily target office jobs and reflect challenges the company faces, including high costs, a slowdown in electric vehicle demand, and uncertainty surrounding the impact of tariffs.
Owned predominantly by Chinese conglomerate Geely Holding, Volvo Cars initiated a cost-reduction program totaling 18 billion Swedish kronor (approximately €1.64 billion), which includes job reductions.
As of the first quarter, Volvo employed 43,500 full-time employees and an additional 3,000 from recruitment agencies.
According to company statements, the layoffs will predominantly affect its office staff in Sweden and account for around 15% of the total global workforce in office roles.
CEO Hakan Samuelsson noted that the automotive industry is experiencing significant difficulties and emphasized the need to enhance cash flow and structurally reduce costs.
Last month, Volvo Cars withdrew its financial forecasts, citing market unpredictability amid declining consumer confidence and tariffs imposed by the United States, which have created turbulence in the global automotive sector.
Recently, former President Donald Trump threatened to impose a 50% tariff on imports from the European Union, although this deadline has since been postponed to July 9 to facilitate discussions.
Samuelsson warned that consumers would ultimately bear much of the cost associated with any tariff increases, highlighting that such a steep duty could jeopardize the import of the EX30, one of Volvo's more affordable electric vehicles produced in Belgium.
