Volvo Cuts 3,000 Office Jobs in Sweden, Global Workforce Amid Industry Challenges

Volvo Cars, owned by Chinese company Geely Holding, has announced plans to cut approximately 3,000 white-collar jobs globally, representing about 7% of its workforce, with a significant portion of layoffs occurring in Sweden where more than half of its 43,800 employees are based. This workforce reduction is part of an 18 billion Swedish Krona cost-cutting and cash action plan aimed at creating a leaner, more efficient organization to address challenges including a profit slump, slowing demand for electric vehicles, rising material costs, and uncertainty from tariffs such as the U.S. 25% tariff on imported cars. The layoffs will primarily affect office-based roles including consultants, with major impacts in Gothenburg and other global offices. CEO Håkan Samuelsson emphasized that these difficult but necessary steps are critical for stabilizing the company and improving cash flow amidst a tough automotive market environment. Volvo also expects to incur a one-time restructuring cost of 1.5 billion Krona, which will impact its financial results in the near term. The company is consulting with labor unions and coordinating with Swedish employment authorities as part of the process.