Volvo Cars will axe around 1,300 office-based employees in Sweden as part of cost cutting, a media report said.
While an earlier efficiency drive had begun to show results, more was needed, CEO Jim Rowan told Reuters in a statement.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time,” he said.
The cuts equate to 6% of Geely controlled Volvo Cars’ workforce in Sweden, the report said.
The 1,300 positions equate to 6% of Volvo Cars’ workforce in Sweden.
Rowan told Reuters the group did not yet know how much it would save from the new measures. “We’re still working the details through on that,” he said in an interview.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company said it had issued redundancy notices for 1,100 employees, while the remaining 200 white-collar positions would be identified following a review of the business across Sweden.
The automaker also expected to cut jobs and reduce costs across its global operations in the coming months, including its consultancies, Reuters said.
Report an ad
It said it also expected to cut jobs and reduce costs across its global operations in the coming months, including its consultancies.
Rowan told the news agency he could not yet specify where those jobs would be cut, but that focus would primarily remain on office based positions.
“We sell in over 80 countries or so worldwide, so I think there’s opportunities for us to become more efficient across the entire network,” he told Reuters.
