6 days ago
Volvo has announced a major wave of job losses with around 3,000 positions set to be cut from the carmaker’s global workforce.
The Swedish brand says it needs to cut costs in response to industry challenges and economic uncertainty, partially stemming from Donald Trump’s US import tariffs.
The majority of job losses will come from the company’s head office in Gothenburg and throughout Sweden, where the firm is expected to axe 1,200 employees, as well as a further 1,000 consultants.
Bosses say that the rest of the jobs losses – which are mostly office positions – will come from ‘other global markets’.
Confirming the news, Hakan Samuelsson, Volvo Cars president and chief executive, said: ‘The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.
‘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.’
Addressing who would be impacted, he added: ‘It’s white-collar in almost all areas including R&D, communication and human resources.
‘It’s everywhere and it’s a considerable reduction. I think it will be very healthy and will save us money and give space for people to [take on] bigger responsibilities.’
The company, owned by China’s Geely, currently has 42,600 full-time employees.
The brand is not the first carmaker to announce major cuts, with Nissan also planning significant reductions over the coming years.
Car Dealer reported earlier this month that the Japanese company is planning to ditch 20,000 roles and seven factories in response to slow global sales.
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