Volvo to lay off 3,000 employees
According to webangah News Agency, Volvo stated on Monday that the workforce reduction is part of its “cost adn liquidity management program” – an initiative aimed at building a more resilient and lasting company amid what it calls “notable external challenges” facing the automotive industry.
The layoffs will primarily affect office staff in Sweden, representing approximately 15% of Volvo’s global white-collar workforce.
“These structural changes are necessary for Volvo to implement its long-term strategy and strengthen profitability,” the company said in its statement.
volvo noted that the final number of affected positions will be determined after completing an organizational review. Of the planned 3,000 job cuts:
- 1,200 positions involve permanent Swedish employees
- 1,000 positions consist of consultants and contractors mainly based in Sweden
- The remaining reductions will occur in other global markets
“Today’s announcement involves difficult decisions but represents crucial steps toward building a stronger Volvo,” said CEO Håkan Samuelsson. “The automotive industry faces unprecedented challenges.We must structurally reduce costs while improving cash flow.”
The announcement comes as former U.S. President donald Trump recently proposed lowering planned 25% tariffs on imported vehicles and auto parts thru executive orders. While these measures exempt auto components from both new tariffs and existing metals duties, parts will still face higher rates under separate product-specific tariffs.
