Volvo to cut 3,000 jobs amid EV slowdown, rising costs
What's the story
Swedish multinational manufacturer Volvo Cars has announced plans to cut its workforce by 3,000 as part of a major restructuring effort.
The company is struggling with high costs and a decline in electric vehicle (EV) demand. Trade tariffs have also added an element of unpredictability.
The job cuts will mainly affect office-based positions in Sweden, and the overall restructuring program is expected to save the company around 18 billion Swedish crowns ($1.9 billion).
Workforce reduction
Impact of restructuring on Volvo's workforce
The restructuring plan was first revealed on April 29 by Volvo Cars.
According to its earnings report, the company had 43,500 full-time employees and another 3,000 staffing agency personnel at the end of Q1.
The job cuts will account for roughly 15% of the total office-based workforce worldwide.
This strategic move is aimed at improving cash flow generation and significantly reducing costs for the company.
CEO's perspective
CEO's statement on the restructuring
CEO Hakan Samuelsson acknowledged the challenges facing the automotive industry.
He said, "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."
He further emphasized that customers would bear a significant portion of any cost increases related to tariffs.
This restructuring comes as Volvo navigates unpredictable markets and weaker consumer confidence amid global trade tariff fluctuations.
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