Volvo Cars, the Sweden-based automaker, announced plans to eliminate approximately 3,000 jobs as part of a broader cost-cutting effort in response to ongoing trade tensions and economic uncertainty impacting the automotive sector.
On Monday, the company revealed that about 1,200 of these job cuts would affect employees in Sweden, with an additional 1,000 consultant positions—mostly based in Sweden—also set for removal. The remaining reductions will occur in other global markets. The majority of the layoffs involve office roles.
Håkan Samuelsson, Volvo Cars’ president and CEO, described the decision as difficult but necessary to strengthen the company’s resilience. He said, “The automotive industry is going through a tough period. To navigate these challenges, we need to enhance our cash flow and fundamentally reduce costs.”
Owned by China’s Geely, Volvo Cars employs around 42,600 people worldwide. The company faces multiple challenges including rising raw material costs, a shrinking European car market, and tariffs imposed by the U.S. government, such as the 25% levy on imported cars and steel.
Volvo’s headquarters and product development facilities are located in Gothenburg, Sweden. Its manufacturing operations span Belgium, South Carolina, and China, where it produces a range of cars and SUVs.