Volvo Cuts 3,000 Jobs, Shifts to Plug-In Hybrids

Volvo Cars, owned by China's Geely Group, plans to cut about 3,000 mostly white-collar jobs globally as part of an SEK 18 billion ($1.9 billion) cost-saving initiative, primarily due to high costs, weaker electric vehicle demand, and tariff uncertainties. The layoffs will affect around 1,200 employees and 1,000 consultants in Sweden, with additional reductions abroad, and are to be completed by fall 2025. Facing stalled battery electric vehicle (BEV) sales—which dropped to 19% of first-quarter volume—Volvo is shifting focus toward plug-in hybrids. The restructuring comes as the US, under President Trump, is considering major tariffs on EU auto imports, adding further risk to Volvo's operations. The company has withdrawn its financial guidance because of the unpredictable market environment. CEO Håkan Samuelsson said the measures are necessary to build a more resilient company amid ongoing industry volatility.