Volvo Cars is set to cut around 3,000 jobs as part of a restructuring initiative aimed at addressing high costs, slowing electric vehicle demand, and trade uncertainties.
The Geely-owned automaker’s decision comes as it seeks to improve its share price and boost demand by restructuring its operations and reducing expenses.
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The action plan, which targets cost reductions of Skr18bn ($1.9bn), will include reduction of 1,000 consultant roles mainly in Sweden, 1,200 employee positions across the company’s operations around the globe including Sweden.
The layoffs will account around 15% of the company’s office staff globally, incurring a one-time restructuring cost of Skr1.5bn.
This new structural set-up is expected to be finalised by autumn this year.
Volvo Cars president and CEO Håkan 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. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
Volvo Car Group recorded a record-breaking core operating profit of Skr27bn for the year 2024.
The company’s revenue in 2024 reached an all-time high of Skr400.2bn, while global sales reached a record 763,389 cars.
Volvo Cars employed nearly 42,600 full-time employees as of December 2024.
The company aims to become a fully electric car company as its fully electric car lineup is the fastest growing market segment.
