Volvo Cars is eliminating around 3,000 jobs or roughly 15% of its global workforce as part of its strategy to reduce expenses by 18 billion Swedish kronor ($1.8 billion), the automaker announced Monday.
The positions will mostly be office-based workers, including consultants from its global operations, a Volvo Cars spokesperson said in an email to Automotive Dive. A majority of the impacted jobs, about 2,200, will occur in the automaker’s home country of Sweden, per the release.
Håkan Samuelsson, Volvo Cars President and CEO said the actions by the company were difficult decisions but important steps to “build a stronger and even more resilient Volvo Cars.”
“The automotive industry is in the middle of a challenging period,” Samuelsson said in a statement. “To address this, we must improve our cash flow generation and structurally lower our costs.”
Volvo expects the restructuring will impact the company’s Q2 results and will cost up to 1.5 billion Swedish kronor ($156 million). However, the automaker said effects would be “realised from the fourth quarter of 2025 and into 2026.” The company said it will share additional details during its quarterly earnings report on July 17.
Production line jobs in the company’s manufacturing operations are not affected at this stage, the spokesperson said. However, Volvo previously announced it was cutting 125 jobs or roughly 5% of its 2,500 workers at its Ridgeland, South Carolina factory.
