Volvo to Cut 3,000 Jobs Amid EV Slowdown

Source Credit : CNBC

Volvo Cars, the Sweden-based automaker, announced on Monday that it will be reducing its workforce by approximately 3,000 positions as part of a comprehensive cost-cutting initiative. This strategic decision underscores the company's commitment to enhancing operational efficiency in a challenging market environment.

The decision follows the announcement by the company, owned by China's Geely Holding, of an 18 billion Swedish kronor ($1.89 billion) cost reduction and cash management plan made late last month.

Volvo Cars announced that it will be implementing a reduction of approximately 3,000 positions, primarily affecting office-based roles in Sweden. This decision represents about 15% of the company's total office workforce.

“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” Håkan Samuelsson, Volvo Cars president and CEO, said in a statement.

“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,” Samuelsson said.

As part of its restructuring efforts, the company announced plans to eliminate approximately 1,000 consultant positions, primarily in Sweden. This reduction will affect around 1,200 employees in Sweden, with the remaining positions impacted across various global markets.

On April 29, Volvo Cars announced the launch of its action plan, which entails a strategic reduction in investments and workforce adjustments across its global operations. Additionally, the company retracted its financial forecasts for 2025 and 2026, attributing this decision to the increasing tariff pressures affecting the automotive industry.