In a significant restructuring effort, luxury automaker Volvo has announced the reduction of 3,000 jobs, amounting to approximately 15% of its office-based workforce. This move comes as part of the company’s newly implemented cost and cash action plan.
The majority of the job cuts will occur in Sweden, affecting predominantly white-collar roles, as the company seeks to bolster its financial position amid declining share prices and challenges in boosting vehicle demand.
Volvo Cars President and CEO Håkan Samuelsson commented on the situation, stating, “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
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Volvo is particularly vulnerable to new U.S. tariffs due to its strong manufacturing presence in Europe and China, raising concerns that exporting their most affordable models to the U.S. could become increasingly untenable.
On Friday, former President Donald Trump indicated a potential 50% tariff on imports from the European Union starting June 1. However, he later retracted this deadline, restoring it to July 9 to facilitate ongoing negotiations between Washington and Brussels.
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As of 2024, Volvo employed over 44,000 individuals worldwide, with around 20,000 holding white-collar positions. The automaker anticipates a one-time restructuring expense of 1.5 billion crowns as it navigates this difficult transition.
Reuters contributed to this report.
