Volvo cars in Sweden said on Monday that they would reduce 3,000 jobs, or about 15 percent of the workforce in the office, as part of a $ 1.9 billion -dollar costs plan announced last month amid difficult market conditions.
The car maker, owned by the Chinese group, said that the cuts aimed at “building Volvo cars are stronger and more flexible at a time when the auto industry faces great challenges in its external environment.”
Volvo Karz said that among the 3000 jobs that will be cut, it was about 1,200 jobs in Sweden, in addition to 1,000 consultants in the first place in the northern country.
“The auto industry is in the middle of a difficult period. To address this matter, we must improve the generation of our cash flows and reduce our costs in terms of structurally,” company CEO Hakan Samuelson said in a statement.
He announced the cost reduction plan in April, he said that Volvo cars had to adapt to a “more regional world”, referring to the trade war between China and the United States.
The Swedish group must handle the high definitions of cars made outside the United States, which is subject to a 25 percent tariff since early April.
Volvo Cars announced in early April that it will increase its production in the United States and may produce an additional model there.
A new production line was also opened at its factory in Ghost, Belgium in late April, dedicated to the Smarie SUVs EX30.
As a result of announcing the jobs announced on Monday, Volvo cars said it expected to bear the cost of one -time restructuring of up to 1.5 billion kronor (158 million dollars), which was booked in its report in the second quarter.
At the end of December 2024, Volvo Cars had about 42,600 full -time employees.
This story was originally shown on Fortune.com
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