Volvo Cars, a Swedish automaker, claims that as part of its cost-cutting efforts, it would eliminate almost 3,000 positions. According to the company, the layoffs would mostly affect Swedish office-based jobs, which account for 15% of its white-collar workers.
The Chinese company Geely Holding owns Volvo Cars, which last month unveiled an “action plan” to restructure the company for 18 billion Swedish kronor ($1.9 billion; £1.4 billion). President Donald Trump’s 25% tariffs on imported automobiles, rising material costs, and weaker sales in Europe are just a few of the significant issues the global auto sector is now dealing with.
Håkan Samuelsson, the CEO of Volvo Cars, attributed the layoffs to the “challenging period” the sector was going through. The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” he stated.
The company said earlier this month that its April global sales were 11% lower than the same period the previous year. Volvo Cars’ primary office and development facilities are located in Gothenburg, Sweden. Significant production facilities are also located in Sweden, Belgium, China, and the United States.
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