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Business EconomyPosted at: May 26 2025 6:49PM


Volvo Cars to reduce 3,000 jobs globally

Gothenburg, May 26 (UNI) Volvo Cars on Monday announced a major global restructuring plan involving the reduction of approximately 3,000 positions worldwide, including 1,200 employee-held roles in Sweden, as part of a SEK 18 billion cost and cash action initiative aimed at streamlining operations and reinforcing financial resilience.
The move comes in the backdrop of increasing challenges faced by the global automotive industry, and is intended to create a "leaner, more efficient organisation with a structurally lower cost base", the company said in a statement.
The reductions will predominantly affect office-based positions, primarily in Sweden, and represent about 15 per cent of Volvo Cars' total white-collar workforce globally. The plan includes the termination of around 1,000 consultancy roles, most of which are also based in Sweden.
"The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars," President and CEO Hakan Samuelsson said. "To address current industry headwinds, we must improve our cash flow generation and structurally lower our costs."
The restructuring includes an immediate notice to Swedish labour market authorities regarding the affected positions. Negotiations with relevant labour unions have commenced, the company confirmed.
While the exact distribution of job losses across global markets will be finalised following an organisational review, Volvo aims to complete the structural transition by autumn 2025. The company expects to incur a one-time restructuring cost of up to SEK 1.5 billion, impacting its financial results for Q2 2025, with full effects to be realised in Q4 2025 and into 2026.
Despite the restructuring, Volvo reaffirmed its long-term ambition to become a fully electric carmaker, citing strong growth in the EV segment. The company underscored its commitment to sustainability and profitable growth in alignment with its net-zero emission targets by 2040.
Volvo Cars recorded a record SEK 27 billion core operating profit for the full year 2024, with revenues of SEK 400.2 billion and global sales reaching 763,389 units — the highest in its history.
Founded in 1927 and headquartered in Gothenburg, Volvo Cars employs around 42,600 people globally and maintains production facilities in Sweden, Belgium, the US and China.
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