Volvo Cars plans to cut around 15% of its office staff, approximately 3,000 jobs, as part of a restructuring effort aimed at slashing costs by $1.9 billion. The Swedish automaker, which has been grappling with high costs and slow electric vehicle demand, will implement cost-cutting measures in various areas, including R&D, communication, and human resources.
CEO Hakan Samuelsson recently announced a programme to reduce costs by 18 billion Swedish crowns ($1.9 billion), with the majority of redundancies expected to occur in Gothenburg. The company’s new CFO, Fredrik Hansson, stated that the restructuring will make Volvo Cars “structurally more efficient” and give employees more space for bigger responsibilities.
The layoffs are part of a broader effort to address trade uncertainty and US tariffs, which have hit Volvo Cars harder than many European peers. The company has warned that it may struggle to export its most affordable cars to the US due to these tariffs.
Despite the job cuts, Volvo Cars’ shares rose 3.6% on Monday, with most of the gain occurring before the layoff announcement. The company’s new structural setup is expected to be finalized by autumn this year.
Analysts have welcomed the move as a positive step towards streamlining operations and improving efficiency. However, the company has withdrawn its financial guidance due to unpredictable markets and weaker consumer confidence in the global auto industry.
Source: https://www.reuters.com/business/autos-transportation/volvo-cars-cut-3000-jobs-restructuring-2025-05-26