Volvo cuts thousands of jobs with its “Cost and Cash Action Plan”
President Donald Trump asks a question from a reporter from Tarmac in Morristown, New Jersey.
Luxury automaker Volvo has significantly reduced its employment of 3,000 people, accounting for around 15% of its office-based workforce.
According to a announcement made Monday, the positions that were most affected are in Sweden. According to media releases, mostly white-collar job cuts are part of the company’s “recently launched cost and cash action plans.”
The layoff is as follows: Swedish car manufacturer It seeks to revive better demand for cars by reviving plunging stock prices, restructuring parts of the business, and reducing costs.
“The automotive industry is in the midst of a challenging period,” said Håkan Samuelsson, president and CEO of Volvo Cars, in a statement. “To address this, we need to improve cash flow generation and structurally reduce costs, while continuing to ensure the development of talent needed for an ambitious future.”
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The Volvo logo was painted in Brussels, Belgium on March 4th, 2024. (Yves Herman / File Photo / Reuters)
With a large portion of its production based in Europe and China, Volvo cars are exposed to newer US tariffs than many of its European rivals, and it says it could be impossible to export the most affordable cars to the US.
on friday, President Donald Trump He threatened to impose a 50% tariff on imports from the European Union from June 1, but on Monday he retreated from that day, regaining the July 9 deadline and allowing talks between Washington and Brussels.
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Volvo Electric will be on display at Everything Electric, The Home Energy & Electric Vehicle Show, held in London, England on April 16, 2025. (Maja Smiejkowska/Reuters)
The Volvo logo will be found on February 26, 2025 at a car dealership in Niemigen, Netherlands. (Piroschka van de wouw/file photo/reuters)
Volvo Cars’ Reuters reported that shares had risen 3.6% by Monday, with most of the increase coming before the layoff announcement. They’ve only dropped 24% since the start of the year.
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According to Reuters, in 2024, Volvo had more than 44,000 employees worldwide. Approximately 20,000 were white-collar workers. Automakers expect one-time restructuring costs for the 1.5 billion crown.
Reuters contributed to this report.