Volvo Cars has announced plans to cut approximately 3,000 jobs worldwide, primarily targeting office-based roles, as part of a major initiative to reduce costs amid economic headwinds and industry-wide challenges.
The Swedish automaker cited growing economic uncertainty and external pressures, including U.S. import tariffs introduced under Donald Trump’s administration, as key drivers behind the decision.
Most of the job reductions will affect operations in Sweden, where the company is set to lay off 1,200 employees at its Gothenburg headquarters, along with an additional 1,000 external consultants. The remainder of the cuts will impact other global markets, with roles across research and development, communications, and human resources on the line.
Confirming the decision, Volvo Cars president and chief executive Hakan Samuelsson said, “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.
“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.”
Addressing the nature of the impacted roles, he added, “It’s white-collar in almost all areas, including R&D, communication, and human resources.
“It’s everywhere, and it’s a considerable reduction. I think it will be very healthy and will save us money and give space for people to [take on] bigger responsibilities.”
Volvo, which is owned by Chinese conglomerate Geely, currently employs around 42,600 people globally.
The announcement comes amid a broader wave of restructuring in the automotive sector. Earlier this month, Car Dealer reported that Nissan plans to eliminate 20,000 roles and shutter seven factories in response to declining global sales.
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